Question
Questions 1. Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near
Questions
1. Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near the beach, so they have a special insurance policy to protect their assets. Business has been slow as fewer large beach weddings are taking place, so Skip and Jack use a large fan to blow down and damage most of their dcor assets, some of which were personal assets of Skip and Jack, to collect the insurance benefits. Will a court allow Skip and Jack recover the insurance money? Is this a situation where the corporate veil may be pierced? Why or why not? What would it mean for Skip and Jack if the corporate veil is pierced in this situation?
2. Benny, Carrie, and Dale are the promoters hired by a small group of investors to find preincorporation stock subscriptions and then deliver the articles of incorporation to the secretary of state. Benny and Carrie are diligent and secure many investors and sign the articles, but Dale failed to sign the articles before turning them in. The mistake is not noticed, and the corporation, ZZZ Biz, begins operations. Would the corporation be considered a de jure or a de facto corporation? Why? After a few weeks of operation, ZZZ Biz fails to pay several creditors, who swiftly file suit to recover their money. Will the creditors be able to use the doctrine of corporation by estoppel to sue the corporation? Why or why not? What did Dale do wrong in this situation, and can it be corrected?
3. Widget Corporation is the manufacturer of many popular children's toys but have seen a great decrease in sales and the board of directors is worried that the business may no longer be viable. The board decides to aggressively sue other toy manufacturers that have likely been infringing on Widget's intellectual property, enter into a joint venture with a another company to build a new factory to reduce costs, and make large and notable donations to children hospitals as part of a PR campaign to raise the corporation's image. Additionally, the board decides to start manufacturing medical equipment to make up for the projected shortfalls in budget, even though the corporation was formed to make toys. Some shareholders are upset and sue the board of directors. Which of the board's actions fall into their express power and which are their implied power? Please explain why the actions would be categorized that way. Would the ultra vires doctrine play a role in the shareholders suit again the board? Why or why not?
4. Harry, Ron, Ginny and Draco are the board of directors for the Magical Care Corporation. As a group, the board has been discussing a sale of the corporation as they are all losing interest in the intricate mechanisms that the corporation is responsible for making and maintaining. The board decides to sell to the first investor, who has offered below market price. Further, Draco and Ginny sought out this investor and made sure to keep other potential buyers away, as they would receive a bonus with their investor. Have any of the board members violated any of their duties to the corporation? If so, how did the board members violate their duties? What should have the board have done instead?
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