Julian, Claire and Mario are the three directors of a company called JCM Pty Ltd. The company runs a

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Julian, Claire and Mario are the three directors of a company called JCM Pty Ltd. The company runs an internet café in the city. The company has been renting a building in the city since 2012. The company has created its own constitution. The rent has become very expensive and the company directors are contemplating buying a building. The directors therefore resolve at a board meeting that the following will take place: 1. A purchase of a building for $1.8m in the city, 2. Julian and Mario are authorized to sign the contract of purchase under seal. The constitution of the company states that any loans from a Bank must be approved by the shareholders in general meeting. Claire is asked by the other 2 directors to go to the bank to arrange the finance and negotiates the terms of the loan. The loan is not approved by the shareholders in general meeting. Jorgen a shareholder of the company finds out about this and is not happy that the company is committed to such a large loan. Required: Advise Jorgen what he can do about the loan? Why would Jorgen be concerned about the loan being taken out by the company?

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