The directors of OAO Hopeful have approached Yuri, a very successful businessman, to become the new general director of the company. The company has struggled to achieve growth in recent years and Yuri has already demonstrated his ability to revive the economic fortunes of other major companies.Yuri has stated that he is prepared to accept the position subject to several conditions.(i) He wants the directors of OAO Hopeful to give him absolute power to carry out any transaction on behalf of the company without power of attorney, as he argues that the company must respond rapidly to urgent business needs.(ii) He insists that he must have the authority to take decisions on the future composition of the board of directors as well as the capital structure of the company.(iii) Yuri wants the company to agree that he will serve on the board of directors for a minimum term of five years, during which he will be guaranteed a specified minimum return on any shares he holds in the company.Required:Advise the board of directors of OAO Hopeful in respect of Yuri’s demands. (10 marks)
