Aztech Oil Corporation and Empire Oil Corporation are two of the world's largest petroleum companies.Aztech Oil Corporation assets are all in Mexico,and all Empire Oil Corporation assets are in Canada.While normally fierce competitors,they agreed that oil developments in Russia were too risky for either to handle alone,given the uncertainties of the business environment.Accordingly,they decided to work together on Russian oil ventures.To keep matters financially apart from their other operations,two new companies were formed in Canada,Aztech Oil (Russia)Corporation and Empire Oil (Russia)Corporation.They operated as "Russian North Oil Ventures." The capital of RNOV was $2,000,000,being the combined assets of AO(R)Corp.and EO(R)Corp.Each had been capitalized with $1,000,000 in cash,which had been then given over to RNOV.Neither AO(R)Corp.nor EO(R)Corp.had any other physical existence beyond their corporate minute books and corporate seals.RNOV set about business and had established base camps on the Russian coast near Japan.
Alan was a director of Empire Oil Corporation and EO(R)Corp,and worked as an employee of RNOV.He arranged for $4,000,000 worth of oil exploration equipment from Vancouver and Calgary suppliers to be delivered to the base camps.At that time,RNOV had $750,000 remaining in its bank account,and,unknown to Alan,the remaining directors of Aztech Oil Corporation and Empire Oil Corporation were locked in a dispute on a number of matters.Alan's request for another $3,250,000 was sent via two copies,one each to AO(R)Corp.and EO(R)Corp.As these two corporations had no more money than that which they were given,they sent requests for funds back up the chain to Aztech Oil Corporation and Empire Oil Corporation.The suppliers were looking for payment from RNOV when Alan got word that the alliance had fallen apart,and that there would be no further funds forthcoming.Advise the suppliers,stating the applicable principles of corporate law,and suggest what the final recovery of the suppliers will be.

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The Answer of Aztech Oil Corporation and Empire Oil Corporation are two of the world's largest petroleum companies.Aztech Oil Corporation assets are all in Mexico,and all Empire Oil Corporation assets are in Canada.While normally fierce competitors,they agreed that oil developments in Russia were too risky for either to handle alone,given the uncertainties of the business environment.Accordingly,they decided to work together on Russian oil ventures.To keep matters financially apart from their other operations,two new companies were formed in Canada,Aztech Oil (Russia)Corporation and Empire Oil (Russia)Corporation.They operated as "Russian North Oil Ventures." The capital of RNOV was $2,000,000,being the combined assets of AO(R)Corp.and EO(R)Corp.Each had been capitalized with $1,000,000 in cash,which had been then given over to RNOV.Neither AO(R)Corp.nor EO(R)Corp.had any other physical existence beyond their corporate minute books and corporate seals.RNOV set about business and had established base camps on the Russian coast near Japan.
Alan was a director of Empire Oil Corporation and EO(R)Corp,and worked as an employee of RNOV.He arranged for $4,000,000 worth of oil exploration equipment from Vancouver and Calgary suppliers to be delivered to the base camps.At that time,RNOV had $750,000 remaining in its bank account,and,unknown to Alan,the remaining directors of Aztech Oil Corporation and Empire Oil Corporation were locked in a dispute on a number of matters.Alan's request for another $3,250,000 was sent via two copies,one each to AO(R)Corp.and EO(R)Corp.As these two corporations had no more money than that which they were given,they sent requests for funds back up the chain to Aztech Oil Corporation and Empire Oil Corporation.The suppliers were looking for payment from RNOV when Alan got word that the alliance had fallen apart,and that there would be no further funds forthcoming.Advise the suppliers,stating the applicable principles of corporate law,and suggest what the final recovery of the suppliers will be.

Aztech Oil Corporation and Empire Oil Corporation Are Two of the World's