Question
ABC Inc. is a corporation with six shareholders, all of whom are active in managing the restaurant business of the corporation. Because the individuals have
ABC Inc. is a corporation with six shareholders, all of whom are active in managing the restaurant business of the corporation. Because the individuals have been so busy trying to make the business a success, they have not had time to hold any meetings or appoint any officers. On occasion, the individuals "borrow" money from the corporation (with no formal documentation), although they always pay it back. The corporation owes its wine supplier $20,000, but has only $10,000 in its bank accounts. May the wine supplier recover any money from the shareholders? Discuss why or why not and give the name of any corporate principle that applies to your answer.
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