GB110 Lecture Notes - Lecture 14: Business Judgment Rule, Summary Judgment, Uberrima Fides
30 Jan 2018
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Under the same circumstances that mr. rodd did. The bod said they wont. purchase of harry rodds shares and to repay the purchase price of her shares under the same conditions that harry rodds purchased his. When mr. rodd was old and not in the best of health, he retired from the company and made an arrangement that the company buy back his 200 shares. Mrs. donahue shares in good faith, as he was a major stockholder. She then appealed her case to the ma supreme judicial court, which reversed the decision. She was only a passive shareholder and controlling stockholder. She wanted the company to rescind the company"s demanded that they do the same with her deceased husband"s 50 shares that he got. The trial judge dismissed her suit, determining that the company bought mr. rodd"s didn"t contribute anything to the company while mr. rodd was an active member duties by buying mr. rodd"s shares back.
