Law of Business Associations - Essay Example
James and Patrick also have the stakes of an accounting firm. This is the same accounting company that handles the accounts of Noosa Group. These three directors own the stakes of Noosa Company equally, each one of them owns 2000 shares, out of the total 6000 shares that the company holds. The company has not paid dividends to its shareholders. Instead they have invested their profits, back into other businesses of the company, with the aim of achieving their long term goals of the organization. Harris’ wife gets sick, and he needs some money to take her to hospital. He is unemployed, unlike the two other directors, who run an accounting firm. He does not have the money to treat her wife, and approaches the other directors to ask them if he company could start paying dividends to its directors. The other directors refuse, and when he decides to sell his shares, they refuse to buy him out. They force him to resign on the account that he is against the long term goals of the organization.
