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Question 1: Brock is a shareholder of Competent Homebuilders Corporation (CHC). For the last few years, business has not been profitable for CHC, and the firm has continued to lose money on its operations. The firm did generate some profit through sales of company assets, but the board of directors still refused to declare and pay a dividend to the firm's shareholders. This last year, the firm's accountants failed to file federal income tax returns, and the firm's board of directors refused to pay federal income tax. Brock discovered this information and became concerned about the board's actions - in particular the failure to declare and pay shareholders a dividend, so he complained to the chairman of the board of directors. However, the board ignored Brock's complaint and disregarded his request. If Brock files a lawsuit with the court, which of these events/actions by CHC or its board would form a legal basis or grounds for the court to order the dissolution of CHC? Why? Discuss the relevant law in detail. If the court denied Brock's petition, could Brock and the other shareholders dissolve CHC? How would they go about this? Describe and explain your answers in depth.
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