Stufft Farms was a Montana corporation that owned and operated a family farm. The only shareholders were

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Stufft Farms was a Montana corporation that owned and operated a family farm. The only shareholders were five family members. The bylaws included a share-transfer restriction stating that no shareholder had the right to sell her shares without first offering the shares to the corporation and shareholders at book value. Neil Johnson offered to purchase all of Stufft Farms’s shares. His offer was contingent upon all of the shares being tendered to him. When four shareholders accepted Johnson’s offer, the fifth shareholder, David Stufft, who did not accept the offer, argued that he had the right to buy the shares of the tendering four shareholders at book value. Was he correct?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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