- Alex is a shareholder of Brick & Mortar Retail Corporation. For the last few years, business has not been profitable for Brick & Mortar. The firm has lost money on its operations. There has been some profit through sales of company assets, but the board of directors has refused to declare a dividend. This last year, the firm’s accountants failed to file federal income tax returns and the board refused to pay the tax. Alex takes a close look at the firm and protests to the board, in particular over the failure to declare a dividend, but the board ignores the complaint. Which of these events, if any, would form a ground for a court to order the dissolution of Brick & Mortar, on Alex’s petition? If the court denies the petition, could Alex and the other shareholders dissolve Brick & Mortar?
- When OmniOil Corporation wishes to issue certain securities, it must provide sufficient information for Petra, and other unsophisticated investors, to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that is “material.” What sort of information would Petra consider material?
- Guitar Maker, Inc., makes guitars. The Occupational Safety and Health Administration (OSHA) proposes a safety rule governing the handling of wood and its dust in the workplace, including the woods that Guitar Maker uses in its operations. Guitar Maker contends that the rule will involve substantial compliance costs without significantly increasing workplace safety. The firm sends a letter to OSHA indicating its objections to the pro¬posed rule and enclosing research reports and other data supporting those objections. Does OSHA have any obligation to consider these objections? What procedures must OSHA follow when it makes new rules, such as this one?
In a Word document, respond to the following questions. Make sure that you interact with the subject matter thoroughly.
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