Hi-TechSolutions is a small, closely held corporation (SAOC). Eighty percent of the stock is held by Mr.Adham, the founder of the Company.Of the remainder, 10% is held by members of his family and 10% by Mr. Mutasim, a former CEO of the company who is now retired. The balance sheet of the company at December 31, 2019, was substantially as shown below.

Amount (OMR)

Assets

Cash

22000

Other Assets

650,000

Total Assets

472,000

Current liabilities

50000

Loan from Bank

200000

Stockholders' Equity

Common Equity

250000

Retained Earnings

172000

Total Liabilities and equity

672,000

The Company's authorized capital is OMR 600000

During February 2020, Mr. Adham issued common shares with a par value of OMR 100,000 to himself at par for cash to strengthen the cash position of the company and to raise cash for financing the establishment of a new branch.

At the next general meeting held virtually on June 15, 2020, Mutasim objected and claimed that his interests had been injured.

Instructions

a)Which stockholder's right was ignored in the issue of shares to Mr. Adham?Explain with reference to the Capital Market of Oman requirements

b)How may the damage to Mutasim's interests be repaired most simply?

c)If Adham offered Mutasim a personal cash settlement and they agreed to employ you as an impartial arbitrator to determine the amount, what settlement would you propose? Present your calculations with sufficient explanation to satisfy both parties.