The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 18, Problem 2IS
Summary Introduction
Case summary: Person N is a majority shareholder in company OC. The sale of the shares of person N will result in a transfer of the right of control of the corporation.
To find: The duty that is owed by majority shareholders towards the minority shareholders of the company.
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Students have asked these similar questions
Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business?
A. None of the above
B. Avoidance of personal liability
C. Possession of a partner
D. Little capital
Explain in details why Directors have a duty of loyalty to the company and must avoid conflicts of interest. Link it to the 2006 company act.
A proxy is a representative of a (shareholder, officer, director) who is liable to (vote, sell shares, buy shares) on the shareholder's behalf at a shareholder meeting. Proxy agreements are generally valid for (eleven months, twelve months, thirteen months). At the time of the shareholder meeting, Francescas's proxy agreement was (fourteen months, thirteen months, twelve months) old. Therefore, Francesca's proxy agreement with her representative (expired, did not expire), and her representative (may not, may) vote on Franscesca's behalf.
What if the Facts were Different
Assume that Brenda purchased Mike's 100 shares of stock and Fransesca signed a new proxy agreement on May 15, 2020. Brenda's purchase of stock on May 15, 2020, is (after, before) the record date. On the record date, (Mike, Brenda) is the owner of the 100 shares and (may not, may) vote based on ownership of the 100 shares at the shareholder meeting. If Francesca signed a proxy agreement on May 15, 2020, it is (more…
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The Legal Environment of Business: Text and Cases (MindTap Course List)
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