Question 2.

a. Noelle has purchased shares in a cosmetic corporation. She is a keen animal rights campaigner. She bought shares in that corporation only for the purpose to gain access to information and to be able to voice her opinions at the annual shareholders meetings. She took the opportunity to speak out against the corporation at every opportunity. Explain her legal obligations to the corporation under these circumstances. (2 marks)

b. Shareholders of a corporation are not happy as the corporation they have shares in, has been wronged by negligent and fraudulent acts committed by one of its directors and as a result have incurred a loss of $60, 000. If the board of directors will not take any action on behalf of the corporation against the wrongdoer, name and explain the type of action that the shareholders could raise. (2 marks)

Question 4

Nabeel and Sonya were married for 14 years.They have now separated.

On valuation day, Sonya owned the following assets- the matrimonial home owned jointly with Nabeel worth $800,000 which has a mortgage in joint names of $400,000, investments worth $60,000 in her name alone, and RRSP in her name alone of $100,000.The ornamental mirror she bought before she was married is now worth $10,000.

At the date of marriage she had a savings account of $25,000 and student debt of $15,000 and she bought an ornamental mirror worth $4,000.

On valuation day, Nabeel owned the following assets- the matrimonial home owned jointly with Sonya worth $800,000 which has a mortgage, in joint names of $400, 000, a stock portfolio in his name alone worth $140,000, RRSP in his name alone of $120,000 and antiques he had inherited from his father during the marriage worth $40,000.

At the date of marriage he had savings of $20,000 and student debt of $10,000.

Calculate the following. You MUST show all your workings to get full marks.

1. Each person's net worth on valuation day. 2. Each person's net family property as at date of separation.

3. Calculate the equalization payment.

4. Calculate each person new net worth after the equalisation payment. Total 10 marks