Oil Industries Inc. is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Po, the majority shareholder, misappropriates company funds. The shareholders whose interests are injured by Po's misconduct should

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Business

Payten Kane

16 October, 11:40

Oil Industries Inc. is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Po, the majority shareholder, misappropriates company funds. The shareholders whose interests are injured by Po's misconduct should

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Jimmuy · Answer 1

Question Options:

a. have their shares appraised and be paid the fair market value for them.

b. promote the transferability of the company's shares to outside persons.

c. reorganize the firm into a sole proprietorship or partnership.

d. hold a special shareholders' meeting to elect new directors.

Answer: a. have their shares appraised and be paid the fair market value for them.

Explanation: The shareholders whose interests are injured by Po's misconduct should have their shares appraised and be paid the fair market value for them.

From the listed options, the most appropriate thing to do is to determine the value of the shares of those affected and pay. Changing the firm into a sole proprietorship or partnership will not return the money back neither will electing new company directors. The most important thing is to get the fair market values back and the way to go about it is by having their shares appraised and paid the fair market value for them.