QLD Shareholder excluded by company

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Max Aurum

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14 March 2019
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I have a relative who is a 5% shareholder in a small proprietary company who she once worked for.

Over the last 5-6 years, she has never been advised about or invited to the company's AGMs, never provided with Annual Financial Statements and never paid any dividends. All requests for statements have been either ignored or lame excuses given about them being with their accountant. Within the firm's industry, the controlling director has a reputation for being an habitual and pathological liar and their is evidence that the company is liquid and has a reasonable turnover.

Are their any avenues available to her to enforce their obligations to report and distribute to shareholders. She contacted her Federal Member who promised to raise it with ASIC but we never received a reply. Would QCAT be an option? Do ASIC or the ACCC have the capacity or processes to take action? Or, is it necessary to pursue the matter through a legal representative?

Any assistance would be appreciated.
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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ASIC is the relevant regulator. However, if you're going to ask them to do anything about it - good luck. They will likely see it as 'too small' for them to worry about.

My suggestion is find a good litigation practitioner who covers corporate and insolvency. Why insolvency? Because they know which buttons to push best.
 
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