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12 Quentin started business as a sole trader in 1976. In 1990 he formed a partnership with his two most senior workers Raj and Sam, although Quentin provided all of the capital. In 1990 they transformed the partnership into a private limited company, Trio Ltd. Quentin holds 76% of the issued share capital in Trio Ltd and Raj and Sam each hold 12% of the issued share capital. The three of them form the board of directors of Trio Ltd. Quentin has never really recognised the change of business form and still treats the company as his personal business, taking decisions without consulting Raj or Sam or holding board meetings. Recently some of Quentin????s decisions have caused the company to lose a considerable amount of money and Raj and Sam are unhappy about this situation. When they raised the issue with Quentin he said that it was his company and if they objected he would simply remove them from the board of directors.
Required:
Analyse the above situation from the perspective of the minority position of Raj and Sam. In particular advise them as to any statutory remedies they might seek as a consequence of Quentin????s actions in the context of a private limited company.
(20 marks)