Question
TriRAngus,acloselyheldcorporation,wasowned80 percent by Jon and Frances Neiman, who were also directors of Tri R Angus. Troy Neiman and Carol Lewis owned12percentofTriRAngus'sshares.TroyandCarol asked a court to
TriRAngus,acloselyheldcorporation,wasowned80 percent by Jon and Frances Neiman, who were also directors of Tri R Angus. Troy Neiman and Carol Lewis owned12percentofTriRAngus'sshares.TroyandCarol asked a court to remove Jon and Frances as directors of the corporation on the grounds that they authorized Tri R Angus to distribute its assets in violation of statelaw,inappropriatelymortgagedorsoldcorporateassets,misusedcorporateearnings,andwastedcorporateassets.JonandFrancesdeniedtheallegations.Attrial, Troy and Carol entered as evidence pleadings from other actions against Jon and Frances and introduced no objective evidence of current conduct by Jon or Frances. What standard of misconduct did the court require Troy and Carol to prove in order to remove Jon and Frances? Did the court find they had proved their case?
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