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Solution Library
Do Directors Have to Implement Shareholders’ Resolution
Question
Central Property Pty Ltd owns certain property. It is approached by Land Ltd which offers to buy the property at a good price in the current market conditions. The shareholders of Central Property Pty Ltd want the company to sell the land and pass a resolution requiring that the land be sold. However, the Board of Directors refuse to sell the property. Advise the directors whether they are bound to implement the shareholders resolution.
Summary
The question belongs to Law and it discusses about the scenario where a company is approached by another company which asks to sell some of its property. The shareholders pass a resolution but the directors refuse to sell the property. The question is whether the directors have to obey the shareholders.
Total Word Count 99
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