Can the corporation recover from the fire insurance company

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Reference no: EM132065917

Question: The Pyro Corporation has outstanding 20,000 shares of common stock. The shareholders consist of:

(i) Peter B. Arson who owns 19,000 shares;

(ii) Elizabeth Arson, Peter's wife, owns 500 shares; and,

(iii) Joseph Q. Arson, Peter's brother, who owns 500 shares.

These three individuals are the officers and directors of the corporation. The Pyro Corporation obtained a $750,000 fire insurance policy to cover a certain building it owned. Thereafter, Peter B. Arson set fire to the building and it was totally destroyed. Can the corporation recover from the fire insurance company on the $750,000 fire insurance policy?

Reference no: EM132065917

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