|University||United Arab Emirates University (UAEU)|
Starco, stockbrokers registered in New York, in attempting to market 1,000,000 common shares to be issued by Reform Corp, a Canadian corporation, offered 500,000 shares to the MastersonConstruction, a Michigan corporation, at $50 per share. Masterson already owned a substantial number of Reform Corp’s shares and Masterson wanted to make a large, immediate acquisition of additional shares of Reform Corp to have more control over Reform Corp.
Masterson’s articles of incorporation state that five out of its seven directors must be present to make any decision of “major importance”. Michigan law also requires that directors be properly notified of all board meetings. After proper notice was given to the four directors who lived in Michigan, but without notice to the three non-Michigan directors, located in UAE, Singapore, and Canada respectively, a special emergency of the board of directors of Masterson was held. All four Michigan-based directors attended the meeting as was Webster, a non-Michigan director who had found out about it from one of his Michigan-based director friends. The directors who were present unanimously voted to purchase 400,000 additional Reform Corp shares. Immediately following the meeting, Masterson Construction purchased and paid for 400,000 shares of Reform Corp stock from Starco at $50 per share via wire transfer.
Starco then struggles to get other buyers for the remaining 600,000 Reform Corp shares at $50 per share. It is able to sell 100,000 shares at $40 per share to accredited investors in New Jersey and an additional 200,000 shares to accredited investors in Massachusetts for $30 per share. In order not to be embarrassed at not having sold all of the 1,000,000 shares, Starco executives market shares to government officials in Canada by creating an all-expenses-paid trip and tour of Vancouver, a major Canadian tourist destination, for any government official that purchased shares of Reform Corp at $20 per share. With this final method, Starco was able to sell all of the remaining 1,000,000 shares.
Stuck! We Have Native UAE Tutors Online 24*7 Who can Answer your Assignment & Homework Questions Instant.
The day after Starco makes the final sale, its CEO, Jim Star, calls Reform Corp headquarters to report the good news and begin the process of transferring the money to Reform Corp minus Starco’s commission and transferring the shares of Reform Corp to the buyers. Every number Jim calls is disconnected. When he walks across the hall to see if his CFO knows a different number, Jim sees that everyone in the office is watching a television news report showing that all of Reform Corp’s top officials, including CEO Leo Ref, have been arrested in Canada for larceny by false pretenses (fraud). The Canadian public prosecutor claims that the fraud has been taking place for at least five years.
1. Is Starco liable to any of the buyers of the 1,000,000 Reform Corp shares? Explain using the IRAC method.
2. The UAE-based director of MastersonConstruction wants to challenge the purchase of Reform Corp shares by Masterson’s board. In which court(s) may she file suit? Explain using the IRAC method.
3. Is Starco guilty of a crime? Explain using the IRAC method.
4. Is Leo Ref liable for any Reform Corp debts that its assets cannot cover? Explain using the IRAC method.
5. Because of the collapse of Reform Corp, Starco cancels the all-expenses-paid trips of some of the Canadian government officials. One official, Rhonda, had already requested unpaid leave from her job and was unable to get it back at such a late date. Is Starco liable to Rhonda? Explain using the IRAC method.
feeling stressed! Dont Know the answer of your assessment questions? Ask Native UAE Experts & Get 100% Plagiarism free papers
Take business law assignment help by UAE experts to receive complete and top-quality solutions. Our experts need to understand the student's locations so that laws related to the location of the student are often used to write case studies on the law. Availing the help to write your case studies on business law is the best option ever.
Looking for Plagiarism free Answers for your UAE college/ university Assignments.
- Argumentative Essay About Using Technology In School: English Writing Skills Essay, EU, UAE
- You Will Assume The Role Of A Management Consultant: Strategic Management For Engineers And Technologists Assignment, UOWD, UAE
- Explain The Essence Of Corporate Social Responsibility (CSR) And Why It Serves An Emerging Strategy: Business Administration Essay, GBS, UAE
- Explain The Different Factors Affecting Supply With A Well-Labeled Diagram: Managerial Economics, ABS, UAE
- MN5617: Critically Evaluate And Implement Principles Of Systems Approach And Analysis: Systems Modelling And Simulation Assignment, MUL, UAE
- Explain To The Manager Of The Firm The Obligations Of A Bond Issue: Introduction To Finance Assignment, US, UAE
- FIN 200: Calculate10 Ratios, 2 Ratios From Each Of The Five Categories Of Ratios: Financial Management Assignment, AUE, UAE
- MBA 210: A Business Incubator Is Planning To Hire A Candidate: Entrepreneurship And Small Business Management Assignment, WUC, UAE
- SEN 3230: Software Engineering Is An Engineering Discipline That Is Concerned: Software Project Management Assignment, EAU, UAE
- BUS4001: Choose An Organization With Which You Are Familiar: Understanding The Business Environment Assignment, AU, UAE