Gimble Hardt Corporation (GHC) is a manufacturer of aluminum wiring. Jason Gimble owns 82 percent of the 2 million outstanding shares of GHC. The remaining 360,000 shares are owned by 832 minority shareholders, none of whom owns more than 1,200 shares. Gimble wants to freeze out the minority shareholders using a reverse share split. Describe that procedure, including a statement of who must approve the transaction. What legal standard must the freezeout transaction meet? Does it matter that Gimble wants to freeze out the minority shareholders so that GHC is no longer a public company that has to comply with the costly rules of the Sarbanes-Oxley Act?
Answer to relevant QuestionsIan McCarthy was president and CEO of Beazer Homes USA, Inc., a publicly held home construction company that was required to restate its quarterly and annual financial statements due to a fraudulent earnings management ...The Eliason family owned a majority (5,238) of the 9,990 shares of Brosius-Eliason Co., a building and materials company, with James Eliason (3,928 shares) and his sister Sarah Englehart (1,260) holding the controlling ...Cookietree, Inc., is a privately held Utah corporation that produces and retails baked goods. The company was formed in 1981, with Greg Schenck and his father, Boyd Schenck, among the original shareholders. From the ...Commonwealth Edison Co. registered 3 million common shares with the SEC and sold the shares for about $28 per share. The price of the purchasers' stock dropped to $21 when the Atomic Safety and Licensing Board denied ComEd's ...Amenity, Inc., was incorporated with 1 million authorized shares, which were issued to Capital General Corporation (CGC) for $2,000. CGC distributed 90,000 of those shares to about 900 of its clients, business associates, ...
Post your question