BLAW 308 Lecture Notes - Lecture 18: Derivative Suit, Insider Trading, Form 10-Q
Document Summary
Shareholders need good faith and proper purpose to look at books and records. Requires a corporation to offer to each existing shareholder, a percentage of new shares equal to the shareholder"s existing shares of ownership. Dividends: you can get cash, or stock(called share dividends) Two limits: solvency test: must be able to pay your debts; can"t pay if it makes you insolvent. Like you werent paid your dividend and the corp wont pay it so you sue them. Or sue on grounds of preemptive right. On behalf of all affected shareholders, like didn"t get a dividend on behalf of all of us(must meet numerosity tho so like if you only have 4 shareholders it doesnt matter) Action that a shareholder brings on behalf of the corporation. So like the board embezzles money, the shareholder can sue on behalf of the corp. Futile if you cant ask the board to bring a derivative suit because theyre the.
