Manufacture windsurfing equipment

Assignment Help Financial Management

Reference no: EM131627105

In November 2012, Mario Bonsetti and Rico Sanchez incorporated Gnarly Vulcan Gear, Inc. (GVG), to manufacture windsurfing equipment. Bonsetti owned 60 percent and Sanchez owned 40 percent of the corporation’s stock, and both men served on the board of directors. In January 2014, Hula Boards, Inc., owned solely by Mai Jin Li, made a public offer to Bonsetti and Sanchez to buy GVG stock. Hula offered 30 percent more than the market price per share for the GVG stock, and Bonsetti and Sanchez each sold 20 percent of their stock to Hula. Jin Li became the third member of the GVG board of directors. In April 2015, an irreconcilable dispute arose between Bonsetti and Sanchez over design modifications of their popular Baked Chameleon board. Sanchez and Jin Li voted to merge GVG with Hula Boards under the latter name, despite Bonsetti’s dissent. Gnarly Vulcan Gear was dissolved, and production of the Baked Chameleon ceased. Using the information presented in the chapter, answer the following questions.

What rights does Bonsetti have (in most states) as a minority shareholder dissenting to the merger of GVG and Hula Boards?

Could the parties have used a short-form merger procedure in this situation? Why or why not?

What is the term used for Hula’s offer to purchase GVG stock? By what method did Hula acquire control over GVG?

Suppose that after the merger, a person who was injured on a Baked Chameleon board sued Hula (the surviving corporation). Can Hula be held liable for an injury? Why or why not?

Reference no: EM131627105

Questions Cloud

Differences between equity financing and debt financing : Describe some of the differences between equity financing and debt financing. What are some of the benefits of equities and debt?

Explain wireless routers and their functions : Create a less than 10 min brief but informative PowerPoint presentation that includes company requirements and current standards in use.

What would be the total portfolio value : Assume that, as in part b, you initially invest 50% in the speculative portion and 50% in the conservative portion. But in this case you use a constant-ratio.

Discuss the role and effects of span of control : Discuss the role and effects of span of control and relate it to organic and mechanistic organizational structures. Share a personal or professional experience.

Manufacture windsurfing equipment : In November 2012, Mario Bonsetti and Rico Sanchez incorporated Gnarly Vulcan Gear, Inc. (GVG), to manufacture windsurfing equipment.

Which one was likely owned by a retired couple : Portfolio A and Portfolio B had the same holding period return last year. Most of the returns from Portfolio A came from dividends.

Does the paper fully address all assignment expectations : Does the paper fully address all assignment expectations? Are the concepts behind the assignment addressed accurately and precisely using sound logic?

Summarize the impact of predicting gaps : Summarize the impact of predicting gaps and parities on quality improvement as it relates to the situation for your Final Proposal and Presentation.

Where did this conflict originate : Janet Ramirez is the supervisor of a ten-person design section at Eco Landscape, Where did this conflict originate?

User Account

All Pages