Integration Markets and Corporate Strategy †Free Samples to Students

Question: Discuss about the Integration Markets and Corporate Strategy. Answer: Introduction: As per the case facts it has been found that Mario and his siblings are getting angry about the discontent that Jason has been stirring up among the Galli grandchildren, sum of whome they see as lazy and undeserving and the board of directors has decided not to provide the dividend amount of A class of shareholders in this year where they want to invest the dividend amount with the fund of the development of the organic vineyard at Robinvale (Graetz and Warren 2016). According to the section 254W of Corporation Act 2001(Legislation.gov.au, 2017) legislates the provisions for providing the rights of the shareholders of the dividend amount which stated various information about the company shares in A class of shareholders according to their eligibility of having dividend rate among with the others shareholders of the company. Therefore as per the case facts the board of GML has not able to make any decisions about the payment of dividend amount to the A class shareholders in this wher e the Galli grandchildren has demanded their dividend amount from the company share (Alstadster, Jacob and Michaely 2017). The Corporation Act of Australia has provided search legislations for the shares and the shareholders where they can demand for the rights for having the dividend payment. The person who is the part of the company law and holds the position of shareholders and where the company owns the amount as the out of expenses those will be the dividend amount (Graetz and Warren 2016). Therefore it also provide the duty to the directors that they must take the immediate and initiative steps for provide the payment of the dividend amount which has been on by the company out of expenses and must distributed equally to every shareholders of the company (Alstadster, Jacob and Michaely 2017). The Corporation Act also stated the legislations fair the partly paid shares or permanent share are also part of the distributed amount from the companies earning which must be provided to the shareholders. According to the rights of the shareholders of any Corporation has been described in the Corporation Act of Australia where it provides the right to the shareholders to attend meeting of company which has been related by the publishing and proposing various reports by the directors of the company (Dent 2014). The Annual General Meeting is also the part of such publishing of the reports for the shareholders can participate and mast suggest necessary proposal and if company add or change any rules and regulation of the companys constitution then they can also make the participation in such activities (Graetz and Warren 2016). Dividend amount is one of the important part which has been earned by the company out of their expensive and recover also recognized as an extra reward which must be distributed among the shareholders and they has the right to claim search revert as the dividend amount (Alstadster, Jacob and Michaely 2017). According to the case facts the galley grandchildren want to take legal actions against the board members of GML due to the nonpayment of the dividend capital amount of to them (Dent 2014). It is the duty of the director that they must pay the dividend amount to the shareholders but here they have failed to provide search duties therefore according to the Corporation Act 2001 the directors has breach the section 181, 182, 183 and 184 (Legislation.gov.au, 2017). According to the company is constitution and the corporation at they are not paying the dividend amount to the shareholders who was Galli grandchildren and instead of providing the shareholders they want to retained earnings to fund the development of the organic vineyard at Robinvale (Alstadster, Jacob and Michaely 2017). According to the case study in the corporation of FWPL Mario and Nick Galli are concerned about the level of dissatisfaction among the A class share holder (Dent 2014). They want to buy A class shareholders at a value to be fixed by an independent expert. the share buyback stated process of shares where company by their own stock of shares as per the benefit of the company (Graetz and Warren 2016). In the share buyback process the Corporation make an offer for buying there on shares from the shareholders of the cover of company and it is one of the most helpful processes which helps the corporations to gain more benefits from the shares from the shareholders (Alstadster, Jacob and Michaely 2017). In this share buyback process company introduces the offer to buy the shares from the shareholders and when the share are sold back again to the company then the company will cancel the previous shares with the shareholders (Dent 2014). The private company has the equal rights to buy the shares from other shareholders in the share buyback process the Corporation Law must choose a particular of shares which only eligible to make offer for the selected shareholders (Graetz and Warren 2016). In the process the dividend components and capital components are used as the share buybacks where the most of the company lowering the share numbers. It helps the company to earn more profit and increased share prices where the company can get back the cash from the shareholders and if any other investors who also make the shares in the company (Legislation.gov.au, 2017). According to the case facts FWPL also want to get rid of the A class shares by way of reduction of capital. In that matter it is necessary for them to work according to the required consent the section 256B of the Corporation Act (Legislation.gov.au, 2017) stated the legislation of the terms where the reduction without the authorization is not possible by any company but it could be could be applicable if it is able to reduce the share capital amount with a fair and reasonable clauses among the all shareholders (Alstadster, Jacob and Michaely 2017). In this process the prejudice system is never make the existence where the company is providing the deduction amount to all the creditors the Corporation helps to state the provisions for the shareholders where they can reduce of the share capital on the basis of 256C of Corporation Act (Legislation.gov.au, 2017). The corporation has the right to cancel the share without any consideration and reduction of share capital should completed sa tisfied the terms of the Corporation Act otherwise it is not applicable for the reduction when the company is being able to cancel the uncalled capital this process will be able to reduce the share capital (Graetz and Warren 2016). The ordinary share holders share amount can also reduce for the benefit of the company because the terms and process of the reduction amount equal for every ordinary share holders of the companies (Dent 2014). FWPL company directors are wanted to reduce the share capital from the shareholders. They must propose a form 2560 notification where they provide the notice of the meeting to pass the resolution for the reduction of the share capitals and submitting every document which are related to the reduction and the notice of the meeting should be sent to the shareholders. In a General Meeting the reduction of share capital resolution should be passed according to the companies on constitution regarding the special resolution as per the circumstances (Legislation.gov.au, 2017). Reference Alstadster, A., Jacob, M. and Michaely, R., 2017. Do dividend taxes affect corporate investment?. Journal of Public Economics, 151, pp.74-83. Dent Jr, G.W., 2014. Corporate Governance Without Shareholders: A Cautionary Lesson from Non-Profit Organizations. Del. J. Corp. L., 39, p.93. Graetz, M.J. and Warren, A.C., 2016. Integration of corporate and shareholder taxes Law. Grinblatt, M. and Titman, S., 2016. Financial markets corporate strategy. Knepper, W.E., Bailey, D.A., Bowman, K.B., Eblin, R.L. and Lane, R.S., 2016. Duty of Loyalty (Vol. 1). Liability of Corporate Officers and Directors. Legislation.gov.au. (2017). Corporations Act 2001. [online] Available at: https://www.legislation.gov.au/Details/C2013C00605 [Accessed 22 Aug. 2017]. Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.