Question
Green Grass, Inc. ( Green Grass ) is a Florida corporation that renders high-end, luxury landscaping services across Central Florida. Green Grass has 1,000 outstanding
Green Grass, Inc. ("Green Grass") is a Florida corporation that renders high-end, luxury landscaping services across Central Florida. Green Grass has 1,000 outstanding shares and five (5) shareholders:
- Eric Smart: 450 shares
- Mr. Smart's three (3) daughters: 100 shares each, or 300 shares total
- Dominic Fox: 250 shares
Last month, Mr. Smart and his three daughters caused Green Grass to purchase 200 of Mr. Smart's shares. After learning about the share repurchase, Mr. Fox sent a letter to Mr. Smart and his daughters requesting that the corporation purchase Mr. Fox's shares. The corporation declined. Which statement below is correct?
A. There is no evidence that Green Grass shareholders have preemptive rights; thus, on these facts, you cannot determine whether Mr. Fox is entitled to force the corporation to purchase his shares.
B. The corporation violated the equal opportunity rule by not extending to Mr. Fox the opportunity to sell a proportional amount of his shares back to the corporation.
C. The corporation must purchase all of Mr. Fox's shares.
D. Mr. Smart and his three daughters violated the fiduciary duty of care.
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