10 years ago, Mo created MediaHype, a Delaware corporation. Mo invested initial capital of 100K dirhams and gave a personal shareholder loan of 10K dirhams to help with the start up. Wanting to bring his sister and brother closer, he elected a Board of Directors with himself, his sister and his brother as its members which in turn elected him as President. Mo ran the daily operations of the store while his sister and brother popped in from time to time. Mo received compensation in the form of commissions on each sale.

A few months later, Mo's sister injected capital, buying 10% of MediaHype's stock from Mo, but Mo's brother never invested financially in the venture. The Board submitted some state-required reports but occasionally missed some. Also, the Board met only about twice a year and some years, not at all. But during one meeting, the Board approved a contract to buy 40% of the 100K dirhams worth of inventory from ABC Corp., a second company owned by Mo.

Sometimes, as "payment" for his hard work, Mo took some of MediaHype's inventory home without paying for it. MediaHype had net profits in some years and net losses in others. It paid dividends in some years, but not in others. Recently, MediaHype ceased business. At that time, the company assets only totalled 50K dirhams in cash, and MediaHype owed a key supplier 40K dirhams. Mo had never been reimbursed for his initial shareholder loan. Just before MediaHype declared bankruptcy MediaHype's supplier and Mo's sister filed lawsuits against MediaHype.

1. Can MediaHype's supplier recover? Discuss all possible angles.

2. Does Mo's sister have a cause of action against him? What about Mo's brother? Discuss all possibilities and if so, how and what could be recovered.

3. Once MediaHype declares bankruptcy, what is the impact on Mo? What can Mo recover if anything? Discuss.