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7. Five friends incorporated a company called Halifax Housing Ltd and rented a building from Property Owners Cooperative. Halifax Housing Ltd planned to rent rooms
7. Five friends incorporated a company called Halifax Housing Ltd and rented a building from Property Owners Cooperative. Halifax Housing Ltd planned to rent rooms in the building to tenants. Each of the five friends paid $1,000 for one common share which provided Halifax Housing Ltd with its initial start-up funding. Unfortunately, the company could not find enough tenants and was unable to pay the monthly rent in full. At the end of one year the rent owing amounted to $20,000. Property Owners Co-op was confident that each of the five shareholders of Halifax Housing Ltd will have to pay $4,000 toward the outstanding debt because contemporary business ethics stresses values such as respect, honesty, fairness, and openness. Is Property Owners Co-op correct? Why? Why not
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