The profits of Trade Joint Stock Company have been falling for two years due to increasing competition and the inability of the company to raise new finance. Linh is a wealthy investor who has returned to Vietnam, having spent many years in Europe. She is prepared to make funds available to the company.(i) Linh is prepared to take a minimum equity stake of 25% in the company but insists that she would expect some degree of control over the company’s business.(ii) She is unhappy with the content of the Charter, believing it to be too restrictive, and states that it must be changed as a condition of her investment. This will enable the company to diversify into new lines of business, though this will expose it to some new risks.(iii) She expects the existing board of management to accept her decisions and trust her business judgement.(iv) She insists on receiving a dividend of at least 10% per year.(v) She also states that in return for her investment she wants the company to guarantee places on the board of management for herself and two trusted advisers for a minimum period of five years.Required:Analyse the matters that must be considered by the board of management in considering whether to accept the conditions proposed by Linh. (10 marks)
