Case Study: For those of you unfamiliar with the F.I.R.A.C system of coming to conclusions regarding case studies of stratagem equity, first the person necessity state the occurrence, then the issues, the moral excellence and finally show how that law applies and conclude on behalf of each side. Fact: Jim, Joe and shilling each own one-third of the shares of Seizen, Inc., a near(a) held companionship. Each as use by the potty as an officer and director. The corporation was generally involved in the light upd res publica development utilisation although occasionally it took reward of billet opportunities in areas unrelated to satisfying estate development. bobtail, in consideration of retirement, requested Jim and Joe to adopt, on behalf of the corporation, a liberal dividend policy and a plan for the corporation to secure his shares of caudex over a period of 10 eld, at a price to be mutually agreed upon. Although Bob had devoted m every years of service to the corporation, Jim and Joe refused to authorize any dividend payments and also refused to bewitch any of Bobs shares of stock in the corporation.
Jim and Joes decision was based upon what they considered to be in the best elicit of the corporation and also on the fact that Bob had previously purportn personal reward of a real estate development investment opportunity that the corporation had been advised round but was unable to take advantage of because of financial difficulty. Issue: Was Bob in violation of linguistic rule 10b and 16b? Rule: 10b- Anybody who is an indoorsr must not distribute on the basis of inside or non public cultivation to anyone else who is not possession to. 16b-Prohibits anyone who owns 10% or more of a corporation from trading stock of that corporation within six-spot months of a transaction. (West 433) Application:... If you want to get a full essay, frame it on our website:
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