Which of the following was the result on appeal in McCann v.McCann,the case in the text involving whether a corporation engaged in a "squeeze-out" as to a minority shareholder?
A) That a material question of fact as to whether the directors could be found to have engaged in a "squeeze-out" of the beneficiary,causing him harm beyond every other shareholder,and that the case would be remanded for further proceedings.
B) That the business judgment rule does not apply in such situations and that so long as there is any business reason for a transaction,a corporation cannot be found liable for a "squeeze-out" resulting in dismissal of the plaintiff's claims.
C) That because he owned over 20% of the stock,the failure to grant the complaining minority shareholder a seat on the board in and of itself was sufficient under the facts presented to establish that the corporation was guilty of behavior constituting an illegal "squeeze-out."
D) That while the business judgment rule applied,the corporation submitted sufficient evidence to establish legitimate reasons for all questioned transactions and that it,therefore,could not be held liable to the complaining minority shareholder.
E) That the failure to declare a dividend when sufficient assets existed with which to do so in and of itself was sufficient under the facts presented to establish that the corporation was guilty of behavior constituting an illegal "squeeze-out."
Correct Answer:
Verified
Q2: Directors each have one vote.
Q7: Which of the following is true regarding
Q8: The text case Patrick v.Allen discussed whether
Q9: The French Penal Code adopts what is
Q10: The primary goal of shareholders is to
Q11: Directors or officers who violate their duty
Q11: In the Case Opener,a majority shareholder voted
Q12: The three main groups of individuals within
Q18: A stock subscription agreement signed before incorporation
Q19: If a shareholder receives watered stock, they
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents