shareholders Calling for Class Action †MyAssignmenthelp.com

Question: Discuss about the shareholders Calling for Class Action. Answer: A member of an organization is often known as a shareholder and the members of the company have certain responsibilities and rights. A member of a company is entitled to own property, sue the property or be sued on behalf of the property. There are two sources of rights that are conferred upon the members of a company like personal rights and derivative rights (Matsusaka and Ozbas 2017). The personal rights are rights that belong to the shareholders and are enforceable by the shareholders as well. The derivative rights are rights that belong to the company and any problem associated with the company is not considered as the problem of the shareholders. The personal rights of the shareholders include rights of the shareholders to inspect the book of the company under section 247A and a right to ask questions at meetings. They have a right to vote and a right to receive dividend. The shareholders are entitled to substantive protection which includes right to rectify any procedural irregularity under section 1322 of the Act. Under Section 232 of the Act, the shareholders are entitled to deal with the conduct of the directors or company that is contrary to the interest of the members altogether. The shareholders have a right to seek orders under section 233 of the Act under circumstances where they have been unfairly prejudiced or have been subjected to discrimination (Chia and Ramsay 2016). In the article published by ABC news, 2017 Ten shareholders calling for class action and compensation, Tens retail shareholders have called for a class action or regulatory investigation for the boardroom secrecy that was followed by broadcasters administration. The shareholder John Homewood has been frustrated as there was absence of lack of communication to shareholders in the past few months. The shareholders held that they were not informed about the business activities carried within the organization. The shareholders were not informed about the fact that their equity interests were to be transferred over to CBS. Mr. Homewood owns 1.1 million shares in the Ten Network Company and he will be losing hundreds of thousands of dollars. Mr. Homewood also stated that the company has not published any financial information for several months due to the administration process. There is a probability that the company will not conduct any annual meeting. According to the personal rights conferred upon the shareholders, they are entitled to receive information about the business activities carried on within the business organization and have a right to vote and take actions against any conduct that is in contrary to the interest of all members as a whole under section 232 of the Act. According to the media report, two shareholders have acted against the best interest of the members of the organization having no regard to the vote or concern of the remaining 17,000 shareholders. Hence, the as per the personal rights which the shareholders are entitled to enforce, they are justified in bringing a legal claim against the company as per the media report (Grantham 2017). References https://www.smh.com.au/business/media-and-marketing/ten-shareholders-calling-for-class-action-and-compensation-20170829-gy6e42.html Matsusaka, J.G. and Ozbas, O., 2017. A theory of shareholder approval and proposal rights.The Journal of Law, Economics, and Organization,33(2), pp.377-411. Corporations Act 2001 (Cth) Grantham, R.B., 2017. The Privatisation of Australian Corporate Law. Chia, H.X. and Ramsay, I., 2016. An Analysis of Shareholder Resolutions Involving Australian Listed Companies from 2004 to 2013.