The reason for giving Jane a larger share than the other two children is because she will be involved in the day-to-day management of the company. During the first meeting of the company, Jane informs all the shareholders that the business is no longer governed by Partnership law, but the Corporations Act and the requirements of the Corporations Act are different from that of the Partnership Act. Jane makes it very clear that the company, given its size, needs to have its financial statements audited every year. The other shareholders agree with the proposal but argue that they need to understand:
What the audit would involve?
Who could be the auditor?
Would it be wise to allow a third party (the auditor) access to their confidential business information?
What if they do not have the accounts audited?
Can Jane do the audit herself?
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