Evertson and others formed a Wyoming corporation to engage in oil well servicing. Evertson served as the
Question:
Evertson and others formed a Wyoming corporation to engage in oil well servicing. Evertson served as the corporation’s vice president. The funds obtained for the corporation’s initial capitalization were insufficient to purchase all the equipment that it needed to function fully. Therefore, Evertson formed and was the only shareholder of another corporation (Rental) that would purchase the equipment that the Wyoming corporation lacked. Evertson enjoyed substantial profits from leasing equipment to the Wyoming corporation. The Wyoming corporation alleged that in forming Rental, Evertson wrongfully appropriated for himself an opportunity that properly belonged to it. Should Evertson be liable for having usurped a corporate opportunity?
CorporationA 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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Law for Business
ISBN: 978-1259722325
13th edition
Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards