GMGT 2060 Lecture 24: Lecture Notes All P 115

• School: University of Manitoba
• Department: General Management
• Course: GMGT 2060
• Professor: Alok Dua

Document Summary

The most important clause is the shot gun clause: make an offer to the other party at a price per share and it"s their choice of whether they buy or whether they sell. However, the shot gun clause isn"t always fair to everyone: if one party is undercapitalized (have no money) you can"t realistically buy them out. You can only buy, no one wants to work for someone who doesn"t have money: in those cases the price per share will be determined by someone else so that the undercapitalized will be considered. Limitation on the separate entity principle: (19:30, the courts are somewhat against meddling with this principle historically because it has resulted in a great deal of prosperity (salomon"s case 1897) Affirming the complete separation of the shareholders and the corporation.