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Problems
Xenon, Yentl
and Zebechiah incorporate a high-tech business in New
Columbia, an MBCA jurisdiction. The three receive
equal shareholdings. Xenon leaves his top-notch
position with IBM, moves to New Columbia, and takes a big
pay cut to become XYZ's new CEO. XYZ prospers under
Xenon's leadership. But after one year, Yentl and
Zebechiah decide to fire Xenon to keep XYZ's rising profits
for themselves. Poor Xenon. He wants hard cash
for his one-third share interest.
Party
A (Xenon) Outline a strategy for Xenon to liquidate
his interest in XYZ. What other information would be
useful to him?
Party
B (Y & Z) Outline a strategy so Yentl and
Zebechiah do not have to buy out Xenon. What other
information would be useful to them?
Bob is a
trusted employee of Our Family Corporation, a closely held
corporation owned by the Klaus family. A few years
back the family gave Bob a 5% shareholding in the
corporation, to induce him to stay and to show the family's
great regard for his services. Last month the family
had a falling out with Bob and let him go. Bob wants
to sell his 5% interest back to the corporation, now that
he's been fired.
Party A (Bob)
Advise Bob on his rights. What further information
is important to provide useful advice to Bob?
Party
B (Klaus) Advise the Klaus family on its rights.
What further information is important to provide useful
advice to the Klaus’s?
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