Answer the following: a. Ron Rader wants to buy all of the stock of Radmore, Inc He approaches the officers and directors and offers to pay them $200 per share for each of the shares they hold. The officers and directors agree and then convince the
majority of shareholders to sell their stock for $100 per share. Do the other stockholders have a cause of action against the officers and directors? Explain. b. Anne, Bob, and Clark are three of the five board members of Starzitz, Inc One day they meet by chance for breakfast and decide to transact some corporate business while they are all together. If they decide to declare a dividend and to purchase another building for the corporation at this meeting, will their actions be binding on the corporation? Explain.
a.
Yes. The officers and directors have a fiduciary duty to the corporation. In this case, personal interest was put ahead of company interests.
?
b. No. All board members are due advance notice of any meetings. This would not be an authorized meeting at which company business could be conducted.
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