Question: lambert is the managing director of cashflow pty ltd which...
Lambert is the managing director of Cashflow Pty. Ltd which runs a chain of restaurants . A short time ago a company sold two of its Gold Coast restaurants and has capital in excess to its needs. The company intends to distribute this excess to its ordinary shareholders. However, the preference shareholders object to this proposal.
Advise Lambert whether Cashflow can proceed with the proposal,and what steps the company should take.
Please justify your answer referring to Corp Act 2001 and relevant case law ?