Nelson is Organic Coffee Company's majority shareholder. Nelson decides to sell his Organic Coffee stock. The sale will be an effective transfer of the control of the company. Does Nelson owe a duty to Organic Coffee or its minority shareholders in this situation?
Yes. A single shareholder-or a few shareholders acting together-who owns enough stock to exercise de facto control over a corporation owes the corporation and its minority shareholders a fiduciary duty when transferring those shares. A breach of this fiduciary duty by those who control a close corporation can constitute what is known as oppressive conduct. A breach of this duty may also occur if a majority shareholder attempts to exclude minority shareholders from receiving certain benefits from participating in the firm. Thus, for example, refusing to perform a valuation of the company, or denying the minority shareholders access to corporate information to which they would otherwise entitled, would constitute a violation of this duty.?
You might also like to view...
Ted is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for a departmental store chain's ads that are targeted at the upcoming Thanksgiving weekend
Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping
Which of the following statements is true of postpurchase behavior?
What did the Print Tradition offer that the Written Tradition did not?
a. an alphabet b. distribution of printed text c. localization of literacy d. geographic limitations
ViviTech has embraced a new high-performance work system that has been designed around team processes and capabilities that would be very difficult for its competitors to duplicate or copy. This means they are difficult to imitate.
Answer the following statement true (T) or false (F)