Question: 1 8 - 6 . Business Case Problem with Sample AnswerRights of Shareholders. FCR Realty, LLC , and Clifford B . Green & Sons, Inc.,
Business Case Problem with Sample AnswerRights of Shareholders. FCR Realty, LLC and Clifford B Green & Sons, Inc., were coowned by three brothersFrederick, Clifford Jr and Richard Green. Each brother was a shareholder of the corporation. Frederick was a controlling shareholder, as well as president. Each brother owned a onethird interest in the LLC Clifford believed that Frederick had misused LLC and corporate funds to pay nonexistent debts and liabilities and had diverted LLC assets to the corporation. He also contended that Frederick had disbursed about $mil lion in corporate funds to Frederick's own separate business. Clifford hired an attorney and filed an action on behalf of the two companies against Frederick for breach of fiduciary duty. Frederick argued that Clifford lacked the knowledge necessary to adequately represent the companies' interests because he did not understand financial statements. Can Clifford maintain the action against Frederick? If so and if the suit is successful, who would recover any damages? Explain. FCR Realty, LLC v Green, WL ConnSuper.CtSee Shareholders.
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