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Part B Question 2 (25 Marks) Harry and Jane are the directors and shareholders of Fantastic Graphics Pty Ltd (Fantastic)

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Part B Question 2 (25 Marks) Harry and Jane are the directors and shareholders of Fantastic Graphics Pty Ltd (Fantastic). Recently. the company began to suffer cash flow problems and needed additional capital. Jane persuaded Robert to invest $100,000 in Fantastic. Harry and Jane held a directors' meeting and decided to issue Robert with 100 shares in the company. A general meeting of shareholders also appointed Robert as a director of the company. At the shareholders' meeting, Robert said that he would not be attending board meetings and wanted to be treated as a 'silent partner. The company's financial position improved due to Robert's $100,000 investment. Despite the company's increased profits, Harry and Jane decided not to declare a dividend for the current financial year. Instead, they gave themselves pay rises and arranged for the company to lease two new Mercedes-Benz cars as a company perquisite available for their personal use. Robert began attending directors' meetings and made several suggestions about how to improve the profitability of the business. He also questioned Harry and Jane about their pay rises. Harry and Jane resented these questions and took the following actions: They formed another company, Harry and Jane Graphics Pty Ltd, in which Robert was not involved, and diverted a valuable government design contract that they had been negotiating on behalf of Fantastic to their new company. Advise Robert on his remedies as a shareholder of Fantastic in th