Banana Pty Ltd ("Banana") is a company which operates a large theme park on the Gold Coast. Banana has issued Class A shares and Class B shares. Class A shareholders are entitled to two votes per share. Banana has a constitution which provides for the following:
•Banana can issue multiple classes of shares;
•Class A shares are entitled to two votes per share;
•The rights pertaining to Class A shares may be altered, modified or varied by an ordinary resolution of the company;
•Directors can refuse to transfer any Class B shares at their discretion;
•The constitution cannot be amended unless Class A shareholders pass a special resolution agreeing to the proposed amendment.
The directors of Banana want to alter the rights relating to Class A shares by giving them only one vote per share. Pursuant to section 246B of the Corporations Act (Cth) 2001, in order for these rights to be altered as proposed:
A) Banana needs to pass a special resolution.
B) A special resolution needs to be passed at a meeting of the Class A shareholders.
C) Class A shareholders with at least 75% of the votes in the class need to provide written consent.
D) A, B and C are all required.
E) A and either B or C are required.
F) None of the above.
Correct Answer:
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