Directors argue that they invested personal savings, thus, they deserve maximum compensation
Two founding directors of a meal kit delivery service challenged their dismissal, arguing they were summarily dismissed for contrived reasons after the majority shareholder failed to invest the promised $1.5 million and unilaterally extended the loan repayment date by six years.
The workers contended that allegations of unauthorised director loans, personal expenses, and deletion of company records were not substantiated with evidence, and they were not given the opportunity to respond.
The employer maintained the workers engaged in serious misconduct, including unauthorised transactions breaching the shareholders' deed, intentional disobedience, refusing to provide admin rights, and deletion of company records, warranting summary dismissal.
The workers founded the business in December 2014. In October 2023, the majority shareholder acquired a 54% shareholding with the shareholder's directors being appointed to the board alongside the workers as founding directors, but with the shareholder's chair appointed with a casting vote.
The announced terms of the acquisition were that the shareholder invests $1.5 million into the business for a controlling interest, the business loans to the shareholder $1.5 million, and the shareholder loans $110,000 to each of the founding directors.
Both sets of loans had the same commercial terms and were to be...
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