• Ron McCann and his brother, Bill, originally each owned $36\mathrm{.}7$ percent of the shares of a close corporation. The remaining shares belonged first to their father, William, and, upon his death, to his wife, Gertrude McCann. $($Upon her death, they were transferred to Bill.$)$ Immediately after William$’$s death, Bill$’$s corporate salary increased from $$48,000$ to $$160,000$ per year. At the same time, Ron was removed from the board of directors and was no longer permitted to work for the corporation. During this same time, Gertrude was receiving a sizable consultant fee even though she was not doing any consulting. Over a $20-$year period, Ron received only three dividend payments amounting to about $$25,000$ in total. Ron now argues that the majority directors breached their fiduciary duty owed to him as a minority shareholder and were engaging in a freeze$-$out. Has Ron sufficiently plead facts to justify a claim for a corporate freeze$-$out? Explain.

  
  

 

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In this scenario Ron and his brother Bill originally each owned 367 of the shares of a close corpora... View the full answer