The president of a corporation, who was also a director and majority stockholder, decided to suspend dividend payments and retain the corporation's massive earnings. He planned to use the retained earnings to finance the construction of a new factory, pay workers high wages, and reduce the price of his product. Two stockholders took the president to court. They asked the court to stop the president from constructing the new factory, and make him resume paying dividends.

 

How would you decide that case?

Answer rating: 100% (QA)

The case would likely be decided in favor of the two stockholders The president of the corporation d... View the full answer