Question
Please provide a reasoning paragraph. Carlene is a 51% shareholder, director and president of Complete Homecare Corporation (CHC). For the last few years, business has
Please provide a reasoning paragraph.
Carlene is a 51% shareholder, director and president of Complete Homecare Corporation (CHC). For the last few years, business has not been profitable for CHC. The firm has lost money on its operations. Carlene had order for CHC's products transferred to her sister's company, Pamelco, Inc., in which Carlene has a 20% shareholder interest, when CHC could not supply its products to homeowners to completes their projects. There has been some profits though sales of CGC's assets, but the board directors under Carlene'c control has refused to declare a dividend. This last year, the firm's accountants failed to file its federal income tax return and the board refused to pay the tax shown on the return. Several of the other shareholders of CHC take a close look at the firm and protest to the board, in particular about Carlene's actions to transfer product sales to Pamelco and the failure to declare a dividend, but the board ignores the complaint. Which of these events, if any, would form a ground for a court to order the dissolution of CHC, on the other shareholders' petition? If the court denies the petition, could the other shareholders take any further action, or themselves join to dissolve CHC?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started