B LAW402 Lecture Notes - Electric Power Distribution, Sport Utility Vehicle, Vehicle Insurance

• School: University of Alberta
• Department: Business Law
• Course: B LAW402
• Professor: Elaine Geddes

Document Summary

2013-14 term ii winter: ruth and ron were friends and business partners who successfully managed the takeover of a company that ron had been working for. Ron provided the majority of the money required for the takeover, holding 99% of the shares. He brought ruth in to take over one of the senior management positions, hoping that between the two of them they could restore the company"s competitive position. Ruth was to receive a base salary of. ,000. 00 plus 10% of the net profits, and 1% share in the company with the promise that she could buy additional shares to 10%. None of the arrangements were put into writing. There were no employment contracts, non-competition agreements or restrictive covenants. Things apparently were going well for a year and profits increased dramatically, although ruth had some issues with payments being made to ron"s wife for very little work and with the management fee that ron received.