Jimmy is the CEO of News Corp. His son, Johnny, runs TelevisionInc. One day Jimmy suggests that Johnny sell Television Inc. toNews Corp. Jimmy and Johnny work together to radically inflate thevalue of Television Inc. Jimmy brings a proposal to the Board ofDirectors to buy Television Inc. for $500 million dollars eventhough the corporation is only worth $2 million. The board ofdirectors diligently examines the transaction, but due to cleverforgeries, the board does not discover the radical inflation of thecorporation. Jimmy never discloses his relationship with Johnny.The sale goes through, and it is shortly discovered that TelevisionInc., is practically worthless.
A shareholder sues alleging that Jimmy violated his fiduciaryduty of loyalty.
Additionally, the shareholder claims that the directors violatedtheir fiduciary duties of care.
Is the shareholder correct?
The requirements below must be met for your paper to beaccepted and graded:
Write between 500 â 750 words (approximately 2 â 3 pages) usingMicrosoft Word.
Attempt APA style, see example below.
Use font size 12 and 1â margins.
Include cover page and reference page.
At least 60% of your paper must be original content/writing.
No more than 40% of your content/information may come fromreferences.
Use at least two references from outside the course material,preferably from EBSCOhost. Text book, lectures, and other materialsin the course may be used, but are not counted toward the tworeference requirement.
Jimmy is the CEO of News Corp. His son, Johnny, runs TelevisionInc. One day Jimmy suggests that Johnny sell Television Inc. toNews Corp. Jimmy and Johnny work together to radically inflate thevalue of Television Inc. Jimmy brings a proposal to the Board ofDirectors to buy Television Inc. for $500 million dollars eventhough the corporation is only worth $2 million. The board ofdirectors diligently examines the transaction, but due to cleverforgeries, the board does not discover the radical inflation of thecorporation. Jimmy never discloses his relationship with Johnny.The sale goes through, and it is shortly discovered that TelevisionInc., is practically worthless.
A shareholder sues alleging that Jimmy violated his fiduciaryduty of loyalty.
Additionally, the shareholder claims that the directors violatedtheir fiduciary duties of care.
Is the shareholder correct?
The requirements below must be met for your paper to beaccepted and graded:
Write between 500 â 750 words (approximately 2 â 3 pages) usingMicrosoft Word.
Attempt APA style, see example below.
Use font size 12 and 1â margins.
Include cover page and reference page.
At least 60% of your paper must be original content/writing.
No more than 40% of your content/information may come fromreferences.
Use at least two references from outside the course material,preferably from EBSCOhost. Text book, lectures, and other materialsin the course may be used, but are not counted toward the tworeference requirement.
