Reference no: EM131558532

Alpha learned that Beta was planning to form a corporation for the purpose of manufacturing an online computer game. Alpha has already developed such a game but lacked financial backing to market it profitably on the internet. Beta agreed to pay Alpha $10,000 in cash and 500 shares of preferred stock in Beta’s corporation. Beta Corporation was formed and the preferred stock was issued to Alpha. But, refused to pay Alpha $10,000 in cash, refused to pay dividends on the preferred stock even though Beta Corporation had substantial earned surplus. In addition, Beta Corporation is selling the remainder of the originally authorized shares, ignoring Alpha’s demand to purchase a proportionate number of shares. What are Alpha’s rights as to the cash payment, dividends, and additional preferred shares?