Claire, Stephan, and Gopa decided to go into business together to provide consulting services. Each invested $100

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Claire, Stephan, and Gopa decided to go into business together to provide consulting services. Each invested $100 000 in return for one-third of the shares in a corporation that will carry on the business. There was an oral understanding, but no written contract, as follows:

  • Gopa would not be involved in the day-to-day decision making related to the business.
  • Claire and Stephan would be elected as the directors and appointed as the president and vice-president of the corporation.
  • All major decisions of the corporation, including selling the business, would require the consent of all shareholders.

For several years, the business operated on this basis, but in 2016 Claire and Stephan decided to sell all the assets of the business. They called a shareholders' meeting to vote on the sale. Gopa did not agree with the sale, but she was outvoted at the meeting. Now that the sale has been approved, is there anything Gopa can do about it?

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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Related Book For  answer-question

Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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