OAO Office is a large company that sells office supplies to businesses in large cities and towns. In recent times the ompany has become less reliant on sales through retail shops and has concentrated on selling its products through lternative channels to market, such as the internet and direct postal sales. Two consequences of this have been an ncrease in the disposals of non-current assets, such as shops owned by the company, and acquisitions of land for entralised warehousing and other purposes.At the most recent general meeting, several shareholders raised their concerns that OAO Office was buying and selling and for speculative purposes. Their view was that the directors were carrying out an unacceptable number of deals n real estate that would expose the company to unacceptable levels of risk. It was pointed out that the Charter of the ompany specifically confines its activities to selling office supplies. The views of these shareholders are supported by he fact that a significant proportion of the company’s income had been generated by transactions in real estate.Required:
(a) Explain the actions that may be taken by the shareholders who object to the increasing involvement of AO Office in land deals. (6 marks)
