The ownership ratio has been altered to Simon holding 20 percent and Herb III 15 percent of shares in Owner. All shares of the Owner bear equal voting rights. The rest of shareholding is dispersed and held by multiple shareholders, none individually owning more than 5 percent of equity. Simon has a contractual right to appoint 2 out of 5 members of the Board of Directors of Owner and the Board approves the strategic operational and financial decisions of the company. Discuss the nature of the relations of Simon and Herb III with Owner.

general account

A VIE has three equity holders, Equity Holder 1 owns 20% of the C/S. Equity holder 2 owns 30% of the C/S and equity holder 3 owns 50% of the C/S. Each of the equity holders has 2 votes on a 6-person board. The board makes all decisions affecting the VIE’s policies and practices. Determine which party, if any, is the primary beneficiary and explain briefly why.

4)  The articles of Spades Ltd. Provide, inter alia: i)    Any shareholder appointed to the position of managing director shall hold the position for life. ii)  Any shareholder who at any time wishes to transfer any or all of his shares shall first offer them to existing shareholders of the company who shall be obliged to purchase such shares at the original purchase price” In September, Karen, a shareholder, was appointed managing director of Spades Limited The Board of Directors has decided to dismiss Karen immediately because of her poor performance on the job to date. Joseph, a shareholder, wishes to sell his shares and has received an offer from Peter, who is not a shareholder, to buy shares well above the original price. Melissa, an existing shareholder, is adamant that she should be allowed to purchase Joseph’s shares at the original price. Joseph is the only shareholder who currently holds less than 5% of the shares of Spades Limited Question:  Advise Karen and Melissa.