Miscellaneous, Ltd$.,$ was a company set up as a joint venture in Country M$.$ Its foreign investor was Mammoth Enterprises, Ltd$.,$ a company organized in Country N$.$ Mammoth owned $51$ percent of Miscellaneouss shares, and it therefore was able to elect all of the directors of Miscellaneous. The other $49$ percent of Miscellaneouss shares had been sold through a stock exchange in Country M to the local public. For several years, Miscellaneous had been unprofitable; then, when it was just about to become profitable, its board of directors bought up all of the companys public shares without revealing its current economic status. The Country M agency that supervises securities transactions has learned of this, and it seeks to force Miscellaneous to rescind these purchases. Will it be successful? Discus

Answer rating: 100% (QA)

The Country M agency that supervises securities transactions has a strong case to force Miscellaneous to rescind the purchases of public shares becaus... View the full answer