9.Recycle Corporation is a private company with four shareholders who each own 25 common shares in the company. In June 2011 when they bought their shares, each shareholder paid $4,000 for their twenty-five shares. In March 2014 Recycle Corporation was unable to pay a $100,000 negligence claim against it.

Does this mean that each shareholder will now have to write a cheque for $25,000 to help pay for the negligence claim? Why/Why not?

10.Ray and Dave each own 25 shares of Best Car Buys Ltd, and Ray and Dave are officers and directors of Best Car Buys Ltd. which sells second-hand cars (used cars). The company had a large inventory of cars on their lot. Ray was tired of the old car he was driving so he decided to replace it with a car from the car lot. When Dave objected, Ray replied, "Look, it's my company too. Because I own half the cars I have the legal right to take one if I want to."

Is Ray correct? Can Ray take a car? Does he own one-half of the cars? Why/why not?

13.El Paso Inc hired Goldman Sachs Corp to advise it (El Paso Inc) whether to split into two companies or to sell the company (El Paso Inc) to Kinder Morgan Corp. Goldman Sachs Corp owns 20 per cent of the shares of Kinder Morgan Corp (worth about US$4 billion) and has two seats on its board.

What is the problem with this situation? How would you recommend it be solved?