ACTG 1P71 Lecture Notes - Lecture 11: Income Statement, Derivative Suit, Fiduciary
1 Apr 2016
School
Department
Course
Professor
Document Summary
Ca(cid:374) have shares that do(cid:374)"t vote usually (cid:271)ut (cid:373)ay ki(cid:272)k i(cid:374) ti(cid:373)e to ti(cid:373)e for i(cid:373)porta(cid:374)t de(cid:272)isio(cid:374)s. You can do what ever you like with respect to voting rights. Forumla by which shares can be converted to a different class. Dad says he will lend , he will be a creditor, and will take security for his debt and 5% on his debt. Dad will buy shares, i will be preferred shareholder but now he wants 8%. I will let you guys run business as long as you pay me dividends. Common shareholders are at greater risk than anyone else, but if business is crazy successful, the common shareholders get rich! Preferred shares just get you the money back with interest. Principle is corporation and agent is director, and 3rd parties are entitled to assume that directors and officers have authority of directors and officers. It is in their apparent authority to sign contracts as directors and officers.
