Alannis and Jake each hold 50 percent of the shares in JagCorp,a limousine rental business.All management decisions since incorporation have been agreed to by both of them.Now they find that they cannot agree on how the corporation should be operated.Alannis wants the corporation to give up the limousine rental business and become an Avis rent-a-car franchisee.Jake wants to continue with the existing business as it is.They have been battling for six months but are deadlocked.In these circumstances,Alannis could get a court to order that the corporation be wound up.

Question

Quizplus · Accepted Answer

In a deadlock situation where shareholders with equal control cannot agree on the management of a corporation, a court may order the corporation to be wound up to resolve the impasse.

Alannis and Jake Each Hold 50 Percent of the Shares