Reference no: EM132597334

Levi was a promoter for a corporation that was going to operate an Indian restaurant in northern Missouri. In 2019, he did extensive market research and determined that the best location was in Kirksville. In October 2019, the state of Missouri approved a corporate charter. In November 2019 stock was issued to 100 shareholders. In December, Rebecca was elected to the Board of Directors who in turn appointed Jimmy as the president. In March 2020, the restaurant opened and was ordered closed by the Governor of Missouri due to the pandemic. In October, the corporation liquidated with the shareholders sustaining heavy losses. The shareholder are upset and believe that the corporation was under-capitalized. They sued Levi, Rebecca, and Jimmy. (4 points each)

Question a. Make the shareholders' argument. What is the legal name for this type of suit?

Question b. Make argument of Levi.

Question c. Make the argument of Rebecca.

Question d. Make the argument of Jimmy.