RSM225H1 Lecture Notes - Lecture 4: Due Diligence, Fiduciary, Oppression Remedy
Document Summary
Homework: peter, paul & mary case: mary: Paul and peter give huff&puff business card, strong case to the fact that they stole o(cid:374)e of h&p(cid:859)s pote(cid:374)tial (cid:272)lie(cid:374)ts. Should ha(cid:448)e (cid:272)o(cid:374)sidered (cid:449)ith mary if h&p should go after this opportunity, instead they took on tailor on their own through blo(cid:449)i(cid:374)(cid:859) wi(cid:374)d. Dividends: she can seek oppression remedy, directors approve issuing shares she was treated unfairly, squeezed her out, fv (1 cent for 100-dollar dividend, does(cid:374)(cid:859)t see(cid:373) reaso(cid:374)a(cid:271)le) & shares have to be actually be paid for. The shares were not officially legal yet because they had only filed for the articles of a(cid:373)e(cid:374)d(cid:373)e(cid:374)t, the(cid:374) the arti(cid:272)les of i(cid:374)(cid:272)orporatio(cid:374) (cid:449)ill (cid:271)e updated, (cid:271)ut has(cid:374)(cid:859)t happened yet. So there is not preferred share class at the moment. Indoor management rule: mary has no signing privilege, can be ok, if these are normal purchasing activities and she has authority reasonably because she is a director.
