Sawyer is a U.S. Senator on the Senate Committee on Foreign…
Sawyer is a U.S. Senator on the Senate Committee on Foreign Relations. As a result of Sawyer’s position, he learns that several oil-producing countries are about to cut production of oil in order to increase the price of oil. (The Committee was evaluating whether such an action would de-stabilize any U.S. interests in the region.) Sawyer also recognizes that, as the price of oil rises, oil companies will profit from the price increase, including Big Oil Inc. (“BOI”). Sawyer is not an officer, director or shareholder in BOI when he learns this information, but he buys stock in BOI before the information is announced publicly. Once the information is announced, BOI’s stock skyrockets, and Sawyer makes a lot of money. If, based upon these facts, Sawyer is prosecuted for insider trading, is Sawyer likely to lose or to prevail?
Read DetailsOn January 1, Larry, Moe, and Bearle sign a written “partner…
On January 1, Larry, Moe, and Bearle sign a written “partnership agreement” according to which they shall form, own, and operate a book store. The agreement provides that each of the three shall receive one-third of the profits. The agreement also contains the following provisions:”This partnership shall last ten years. However, any partner can be expelled at any time if the other partners unanimously agree that he or she should be expelled.”In the following months, Larry complains regularly about the state of the firm’s business. Moe and Bearle are more optimistic, and they grow tired of Larry’s constant complaints. Therefore, on December 31, when Larry, Moe, and Bearle meet, Moe and Bearle vote to expel Larry. Which, if any, of the following statements is correct?
Read DetailsTom, Mary and Gwen are the only three shareholders in TMG Co…
Tom, Mary and Gwen are the only three shareholders in TMG Corp. Tom has 9 shares, Mary has 5 shares and Gwen has 4 shares. There are no other shares outstanding. TMG uses cumulative voting. TMG has five director positions on its board of directors, and each director is elected each year. In the annual election to elect the five directors, how many votes will Mary have under cumulative voting?
Read DetailsZach and Lisa have formed an LLC under Delaware law. Mark wa…
Zach and Lisa have formed an LLC under Delaware law. Mark wants to join the LLC as a member. However, he does not want to make a contribution to the LLC and is not interested in receiving a limited liability company interest. Assuming that Lisa and Zach agree with Mark’s demands, would it be legally possible for Mark to become a member without a membership interest and without making a contribution?
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