How much stocks is new corporation entitled to cancel

Assignment Help Business Law and Ethics

Reference no: EM133477936

Assignment:

David Walker and Robert Hudson were best friends and business partners. They paid $500,000 in cash for an old warehouse. Later, they received an appointment as promoters for a new corporation that would manufacture artificial arms. The corporation needed a large production facility, and David and Robert sold the warehouse they owned for $800,000 worth of stocks in the new corporation once it was formed.

Later, the corporation was formed and the shareholders discovered just how much David and Robert had paid for the facility. How much of the $800,000 in stocks is the new corporation entitled to cancel if any. Discuss.

Reference no: EM133477936

Questions Cloud

What will be the rationale of the court in its holding : What will be the rationale of the court in its holding?

Describe a business you would like to start : Include a summary of the products and/or services the business would sell, where it would be located, the market that it would serve.

Explain aspects of the foreign corrupt practices act : Briefly explain the two major aspects of the Foreign Corrupt Practices Act.

Why are divorces in canada called no fault divorces : Why are divorces in canada called "no fault" divorces?

How much stocks is new corporation entitled to cancel : Later, the corporation was formed and the shareholders discovered just how much David and Robert had paid for the facility.

What is the status of the contract : Andy loaned P20,000.00 from Benny. Terrence orally promised to assume the obligation of Andy. What is the status of the contract?

Who is adopting rules to achieve purposes of securities acts : Who is responsible for adopting rules to achieve the purposes of the securities acts?

Which states were the majority of immigrants from ireland : According to the map on page 47, in which state(s) were the majority of immigrants from Ireland?

Determine the liability of the insurance company : A driver with a bodily injury policy with limits of 100?/300 injures a bicyclist who was awarded damages of?$117,000.

User Account

All Pages