Question
Example question from textbook: Long Ball Corp. (LBC) owns 67% of the outstanding common shares of Tangelwood Golf Courses Inc. (Tangelwood), which operates two luxury
Example question from textbook:
Long Ball Corp. ("LBC") owns 67% of the outstanding common shares of Tangelwood Golf Courses Inc. ("Tangelwood"), which operates two luxury golf courses near Bracebridge, Ontario.Tanglewood has only 1 class of shares and was incorporated as a privately-held company under the Business Corporations Act (Ontario).LBC, with its majority voting power, elected all three directors on Tangelwood's board.Then, the board decided to sell Tanglewood's most popular and profitable golf course to LBC for only half of its fair market value.How have the minority shareholders of Tanglewood been affected by this transaction and what legal recourse, if any, is available to them?Please explain, with thorough factual analysis and comprehensive reference to potential legal actions and relevant statutory provisions.Please refer to the relevant provisions of either the CBCA or the OBCA.
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