This topic contains a solution. Click here to go to the answer

Author Question: Inspection Rights. Craig Johnson founded Distributed Solutions, Inc (DSI), in 1991 to make software ... (Read 26 times)

asd123

  • Hero Member
  • *****
  • Posts: 557
Inspection Rights. Craig Johnson founded Distributed Solutions, Inc (DSI), in 1991 to make software and provide consulting services, including payroll services for small companies. Johnson was the sole officer and director and the majority shareholder. Jeffrey Hagen was a minority shareholder. In 1993, Johnson sold DSI's payroll services to himself and a few others and set up Distributed Payroll Solutions, Inc (DPSI). In 1996, DSI had revenues of 739,034 and assets of 541,168. DSI's revenues in 1997 were 934,532. Within a year, however, all of DSI's assets were sold, and Johnson told Hagen that he was dissolving the firm because, in part, it conducted no business and had no prospects for future business. Hagen asked for corporate records to determine the value of DSI's stock, DSI's financial condition, and whether unauthorized and oppressive acts had occurred in connection with the operation of the corporation which impacted the value of the stock. When there was no response, Hagen filed a suit in an Illinois state court against DSI and Johnson, seeking an order to compel the inspection. The defendants filed a motion to dismiss, arguing that Hagen had failed to plead a proper purpose. Should the court grant Hagen's request? Discuss.

Question 2

Traditionally, employees did not act as agents for their principals, but today employees may well also be agents.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Hdosisshsbshs

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

Inspection rights
The court denied the motion to dismiss, but after the defendants gave Hagen twelve boxes of corporate recordstwo years after Hagen's initial requestthe court issued a summary judgment in the defendants' favor, concluding in part that Hagen's request to inspect DSI's records had not been specific enough. Seeking damages, Hagen appealed to a state inter-mediate appellate court, which reversed this judgment and remanded the case. The chief question on appeal was the specificity of Hagen's request. The appellate court held that this was not a valid defense because this claim came only after (1) defendants had ignored plaintiff's initial written request, (2) . . . plaintiff was compelled to institute litigation, and 3 defendants had briefed and arguedunsuccessfull ya motion to dismiss plaintiff's complaint based on lack of a proper purpose . . . . A corporation's failure to respond within a reasonable time to a shareholder's written demand for inspection of the corporation's books and records does, under proper circumstances, constitute a denial of access which is a violation of the Illinois Business Corporation Act.

Answer to Question 2

TRUE




asd123

  • Member
  • Posts: 557
Reply 2 on: Jun 24, 2018
Great answer, keep it coming :)


Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

For a complete list of videos, visit our video library