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Smith, Jones, and Brown Incorporated a Company Called Yakima Ltd

Question 60

Multiple Choice

Smith, Jones, and Brown incorporated a company called Yakima Ltd. The three were the only shareholders, directors, officers, and employees. Jones and Brown disliked working with Smith. They knew he was good for the company, but they disliked his personality and politics. After a year, Jones and Brown, as directors, removed Smith as an officer and employee and raised their own salaries as employees. They then voted Smith out as a director at the next shareholders' meeting. Which of the following provisions of the Corporations Act would aid Smith?


A) Shareholder oppression
B) Pre-emptive rights
C) Indoor management rule
D) Derivative action
E) Dissent procedures

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