Shareholder of a company
Course:- Financial Accounting
Reference No.:- EM13256

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

Task 1:

1. Wal-Mart has had various stock splits. Its stock price is hovering around $50 per share. Berkshire Hathaway, led by Warren Buffet, does not split its stock. Its price has been near $100,000 per share. What are reasons why Wal-Mart would split its stock and Berkshire Hathaway chooses not to do so?

2. Roland Astute, a shareholder of Steamroller Corporation, uncovered evidence that, in his opinion, showed that the corporation's treasurer was embezzling corporate funds.  Uncertain of whether the corporation's board of directors would agree with his assessment of what the evidence showed, Astute did not discuss the matter with the board or with other shareholders.  After conferring with his attorney, Astute filed a derivative suit against the treasurer, in an attempt to recover for the losses the treasurer's actions had caused the corporation to experience.  Under the circumstances, is Astute's derivative suit properly before the court?  Explain.

3. Illustrate the ways that a person can become a shareholder of a company.

4. Nancy owns shares in ExxonMobil. Explain the MBCA requirements of notice concerning shareholder meetings.

5. Why do you think that Delaware's corporation laws now permit remote communication? What are the needs for a remote participation meeting?

Task -2 (Case Problem)

John R. Dyer owns approximately 6 percent of the stock in the Indium Corporation. All of the remaining outstanding shares are owned by the corporation's chief executive officer and chair of its board of directors. Suspecting that the corporation was improperly retaining income otherwise payable to him, Dyer sought to inspect its records and books . He was provided the minutes of its share-holders and board of directors meetings, but otherwise rebuffed in his requests for records. Instead, the chief executive officer provided to purchase Dyer's shares. Dyer sued, demanding inspection of the records that his accountant deemed necessary in order to evaluate the value of his shares. Should Dyer be given a right to inspect the corporate records? Explain.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset i
YOUCPA is a regional CPA firm engaged in public audit work of small- and medium-size firms in the Midwest. The YOUCPA firm has their main office in Chicago, Illinois, and re
Company X sells on a 1/15, net 90, basis. Customer Y buys goods with an invoice of $3,000. What is the effective annual rate of interest if Y pays on the due date rather than
Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation—Equipment account has a balance of $46,500 at the present time. The company could sell the machine to
Describe the rules to determine whether to apply fresh start accounting to Kansas City and if fresh start accounting is appropriate, how will this company's assets be reported
On January 3, 2011, McDonald Inc. purchased 40% of the outstanding common stock of Old Farms Co., Prepare the journal entries made by McDonald Inc. during 2011 related to its
On July 1, Year 1, Cobb Company issued 9% bonds in the face amount of $1,000,000 which mature in ten years. The bonds were issued for $939,000 to yield 10%, resulting in a bon
XYZ Company manufactures skateboards. The company offers a 1-year warranty on all products. During 2016, the company recorded Sales Revenue of $2,000,000. Historically, about