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Referring to the above questions, DustCorp has a manufacturing facility in Juarez, Mexico, across from El Paso. Under NAFTA and other treaties between the U.S.
Referring to the above questions, DustCorp has a manufacturing facility in Juarez, Mexico, across from El Paso. Under NAFTA and other treaties between the U.S. and Mexico, MegaCorp legally sends the parts across the border to be assembled by workers who make the U.S. equivalent of $2 an hour. The reason DustCorp does this is to get cheaper labor and to return greater profits to the shareholders. Last year the Little Sisters of the Perpetually Annoyed, who own 500 shares of DustCorp's common stock, submitted a shareholder proposal at the annual meeting to the effect that sending the work to Mexico to be performed at inhumane wages was immoral, and demanded that DustCorp cease the practice. That proposal was defeated in a close vote. This year, the Little Sisters have sent a letter to the CEO demanding that the company devote fifty percent of the costs saved by manufacturing in Juarez to improving the living conditions of workers in that city. The CEO has asked you for advice regarding the demand. Which of the following is sound on legal grounds?A. Under the law of Euphoria, making donations for public welfare or charitable purposes is a power and not an obligation of the corporation. B. The sole purpose for the existence of corporations is to return profits to the shareholders. C. The Little Sisters have no standing as shareholders to make the demand
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