Lulu, Bucky and Mookie are directors of Baseball Pty Ltd. Mookie also holds 1% of the shares issued by Baseball Pty Ltd with Lulu and Bucky holding the balance of the shares. Lulu and Bucky vote Mookie off the board, increase their directors' fees, cease all dividend payments and take certain corporate opportunities belonging to Baseball Pty Ltd for their own benefit. Which of the following is correct:
A) Mookie could not commence an oppression action under section 232 because she is a director;
B) If Mookie was successful in perusing a derivative claims against Lulu and Bucky for breaches of their fiduciary duties, she would get to keep 100% of the proceeds from the lawsuit;
C) Lulu and Bucky's conduct would never be a breach of section 232 as they were acting within the scope of their power under section 198A of the Corporations Act (Cth) 2001;
D) If a court found that Lulu and Bucky breached section 232 Corporations Act (Cth) 2001, Mookie could seek to have the other directors buy out her shares in the company;
E) If a court found that Lulu and Bucky breached section 232 Corporations Act (Cth) 2001, they both could potentially go to jail.
Correct Answer:
Verified
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