a) Due to how Donals has enough stock to control a corporation he must follow the liability of controlling shareholders. What is being violated is that since Donald has majority stock control he has a fiduciary duty to minority shareholders and is subject to the business judgment rule. The corporation could be terminated by the state. Yes because Dobaks is not doing a reasonable decision but doing it from a dream he had. I would advise Carol to pursue the shareholder right to vote. Donald will lose.

b) McNeel's inclination is correct, it would be most beneficial for him to incorporate in Deleware. Deleware is a good place to incorporate for corporations doing business in several states. It offers flexible laws that favor management, an efficient court system, an established body of law, and a neutral arena. In his charter, I would advise McNeel to include the name of his business, address and registered agent, and purpose of his business, as well as information about his stock and shares.

are these two statement correct? explain why

Answer rating: 100% (QA)

a The first statement seems to discuss a scenario involving corporate governance issues where Donald ... View the full answer