C.E. Stumpf & sons, Inc., was formed to conudct a masonary and general contracti

Question

C.E. Stumpf & sons, Inc., was formed to conudct a masonary and general contracting business. the corporation waso owned in equal shares by Stumpf and his two sons, who had previously operated the same business as partners. Hostility between the two sons grew so extreme that one, Donald, ended contact with his family and was allowed no say in the operation of the business. After Donald's withdrawal from the business, he received no salary, dividends, or other revenu from the company. He brought suit seeking involuntary dissolution of the corporation. Should the court of appeals of California uphold the trial's dissolution order?

Explanation / Answer

Donald was owning 1/3rd of the shares and as per corporate code section 1800 so a shareholder with 1/3 or more shares can bring suit for involuntary dissolution.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.