Nabisha is the long time 30% shareholder of the non-offering corporation, Transformer Auto Repair Corp. Although she has been happy about the investment, she has recently become concerned about certain things. 

For each of the following concerns, explain how Nabisha could deal with each concern, with supporting references to the BCA:

The corporation just entered into a contract with Jim's Tire Service Inc. Once of the directors of Transformer Auto Repair Corp., Mr. Henry Jones, is also a major shareholder in Jim's Tire Service Inc. Mr. Jones did not disclose his holding before the contract was signed. Although Nabisha has requested the rest of the directors to do something, nothing has been done. (2 marks)

Nabisha has not received a declared dividend, although it appears that other shareholders have received it.

Nabisha is upset about a planned merger with Regeneration Autobody Corp. Regeneration Autobody Corp. has not been performing well on the stock market and Nabisha is concerned that her value of her investment will shrink. 

Answer rating: 100% (QA)

Nabishas Concerns at Transformer Auto Repair Corp TARC 1 Undisclosed Conflict of Interest Concern Director Mr Jones has a conflict of interest because ... View the full answer