Reference no: EM133312247

1. In what ways does the close corporation resemble a partnership?

2. In Donahue v. Rodd Electrotype, what does the court mean by the following statement?

1. "Although the corporate form provides the above-mentioned advantages for the stockholders (limited liability, perpetuity, and so forth), it also supplies an opportunity for the majority stockholders to oppress or disadvantage minority stockholders."
2. What is shareholder oppression? How exactly can a majority shareholder oppress a minority shareholder?
3. How can minority shareholders protect themselves from potential "oppression" by majority shareholders?

3. In Donahue v. Rodd Electrotype, why did the court conclude that: "Unless an equal opportunity is given to all stockholders, the purchase of shares from a member of the controlling group operates as a preferential distribution of assets."? Do you agree with the court's conclusion? Please explain your rationale.

4. Please respond to the following statement: "When the founder of a successful corporation retires, and hand over the corporation to their children or other family members, the potential for conflicts and litigation increases exponentially." Do you agree or disagree? Please provide the rationale for your conclusion.