Is the shareholder correct

Assignment Help Business Law and Ethics
Reference no: EM131242725

Fiduciary Duties

Jimmy is the CEO of News Corp. His son, Johnny, runs Television Inc. One day Jimmy suggests that Johnny sell Television Inc. to News Corp. Jimmy and Johnny work together to radically inflate the value of Television Inc. Jimmy brings a proposal to the Board of Directors to buy Television Inc. for $500 million dollars even though the corporation is only worth $2 million. The board of directors diligently examines the transaction, but due to clever forgeries, the board does not discover the radical inflation of the corporation. Jimmy never discloses his relationship with Johnny. The sale goes through, and it is shortly discovered that Television Inc., is practically worthless.

A shareholder sues alleging that Jimmy violated his fiduciary duty of loyalty.

Additionally, the shareholder claims that the directors violated their fiduciary duties of care.

Is the shareholder correct?

Reference no: EM131242725

Questions Cloud

Can the state meet its burden of proof in this case : Assuming your client is found guilty on felony charges stemming from the marijuana possession, what argument might you make to the judge and the jury regarding sentencing? What constitutional amendment supports your theory and why?
How long should the town wait after the application : How long should the town wait after the application of the sand layer before the terrain can be sold?
Compare the results with the complete solution : Modify the computer program 16.2 so that only one term of the solution is calculated (by omitting Line 200 in the program), and compare the results with the complete solution given in Figure 16.2, see also Figure 16.4.
Ethical and legal implications of asking applicants : Discuss the ethical and legal implications of asking applicants about the health history of family members. Setting aside the possible legal issues, should a company take family health into consideration when evaluating an applicant?
Is the shareholder correct : Jimmy never discloses his relationship with Johnny. The sale goes through, and it is shortly discovered that Television Inc., is practically worthless. A shareholder sues alleging that Jimmy violated his fiduciary duty of loyalty. Is the sharehol..
Human resources management : What is the summary of the chapter 6? the tittle is "personnel selection" in the book "human resources management"
Describe why the lack of controls on herbal : Describe why the lack of controls on herbal and alternative therapies can impact safe drug therapy.
What is behind the call to transcend mere technique : Analyze these claims in light of Galanter, Llewellyn, Frank, Garth and Sterling, Kagen, et al and any other texts or lectures you wish to incorporate into your response. Keep in mind as you write that Schlag says a number of times that he does not..
What should be the additional load : The deformations of the clay layers will be analyzed by performing oedometer tests on samples from each clay layer. What should be the initial load on each of the two samples, and what should be the additional load?

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Explain the effects of the americans with disabilities act

Explain The effects of the Americans with Disabilities Act and Use the Library or other web resources to locate a recent court decision involving the Americans With Disabilities Act

  Benefits of a comprehensive juvenile justice strategy

What are the benefits of a comprehensive juvenile justice strategy? What aspects of a comprehensive strategy contribute to those benefits? What are the drawbacks to implementing a comprehensive juvenile justice

  Net income of both exxon and chevron for 2012

Analyze the gross profit, operating profits, and net income of both Exxon and Chevron for 2012 and 2013. Of the two (2) companies, speculate on the main reasons why one (1) company may have been more profitable than the other company

  What way may views of biological causes of crime be related

Why do you think some people are troubled by the idea that crime has a biological cause? Support your response using an article from the popular media presenting the biological argument for criminal behavior.

  Has the court system reached the right balance

Has the court system reached the right balance between the individual worker who does not wish to join the union or pay union dues with the rights of the union to collect for its collective bargaining costs

  Examine correctional organization functions

Evaluate past, present, and future trends pertaining to the development and operation of institutional and community based corrections. Examine correctional organization and administration functions that reflect operations and fiscal demands

  What does the mailbox rule

What does the mailbox rule, in the context of common law contracts, state? Which of the following meets the consideration requirement of contracts

  What arguments can you make against it

What arguments can you make in favor of the proposed rule? What arguments can you make against it? Prepare a memo discussing these rules for the mayor and city council and recommend whether the city should adopt the rule

  The difference between the government taking property

What do you think? Do you see the difference between the government taking property for public good as opposed to forcing a land sale to allow another private property owner to take the property?

  Explain the law school tier or stratification system

Explain the law school "tier" or stratification system. Look up a law school, preferably one you would like to attend. What tier is it in? Does the tier make a difference for you in choosing a law school? Why or why not

  Explain the role of the government in building business

Explain The Role of the Government in Building Business and President Obama recently stated "If you've got a business

  Research two different codes of ethics

Research two different codes of ethics for any two groups of healthcare professionals. You can research groups, such as nurses, physicians, and allied health professionals

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd