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15. Assume that the articles of incorporation requires directors to approve the payment dividends by 85% before any dividends are paid. Assume also that Ernest
15. Assume that the articles of incorporation requires directors to approve the payment dividends by 85% before any dividends are paid. Assume also that Ernest will be paid $100,000 as a salary and Julia will paid $100,000 as the corporation Vice-President for Planning and CLO. Sebastian, on the other hand, will receive only dividends. Could the board refuse to pay any dividends? If Sebastian were to become disgruntled because no dividends were being paid, could he compel the corporation to buy him out? To dissolve? See MBCA 13.01; 13.02; and 14.30. Could the parties have used 7.32 ex ante to provide a solution
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