Have to henry and martha as minority shareholders

Assignment Help Operation Management

Reference no: EM132272307

Read the following scenario.

A family-owned business can have special complications. The line separating family relationships and legal responsibilities can be unclear. It is important for directors, officers, and owners of a family-owned business to be aware of the issues to avoid misunderstandings and unintended liability and to preserve familial relationships.

You are a consultant advising a "mom and pop" grocery store owned by Jeff and Joan, a married couple, and their two adult children, Martha and Henry. The grocery store operates under a subchapter S corporation. Jeff and Joan as a couple own 70% of the corporation's shares, and Martha and Henry each own 15% of the shares. Jeff, Joan, and Martha are directors of the corporation, and Henry is the corporation's chief executive officer (CEO).

Create a client memorandum (memo) addressing the following:

Explain the legal duties that Jeff and Joan, as majority shareholders, have to Henry and Martha as minority shareholders. What are their duties to Henry (an owner) as directors of the corporation?

Define the types of ethical duties Jeff, Joan, Martha, and Henry have to each other as owners of the company. What about as family members?

Provide suggested steps the family can take to abide by their legal duties as directors and officers, yet still preserve relationships between family members.

Reference no: EM132272307

Questions Cloud

What are the main benefits you would expect the organization : In organizations that you have worked in or are familiar with, what are the main benefits you would expect these organization would achieve by establishing a PM

Supply chain integration is major contributing factor : Supply chain integration is a major contributing factor to organizational success. The goal of supply chain integration is alignment within the supply chain.

Summarizing the state of the pmo from the article : Summarizing the State of the PMO from the article that is attached or any other research you can do on the internet regarding the current state.

Define which type of budgeting system is most appropriate : "On what basis shall we allocate resources to Program A instead of Program B," is the perennial statement in public sector budgeting.

Have to henry and martha as minority shareholders : Explain the legal duties that Jeff and Joan, as majority shareholders, have to Henry and Martha as minority shareholders.

What obstacles have you identified that have prevented : What obstacles have you identified that have prevented you from being as successful as you want to be?

What were the basic arguments articulated by each : What were the basic arguments articulated by each in their contributions to the development of Classical Organizational Theory?

Six sigma approach to quality management mean for business : What does the Six Sigma approach to quality management mean for a business?

Determine training and recruiting needs : Summarize in why the questions in your survey will be helpful in determining training and recruiting needs if talent is not able to be developed.

User Account

All Pages