Question

18. Armond is a shareholder of Brix and Mater Hotel Corporation. For the last few years, business has not been profitable for Brix and Mater. The firm has lost money on its operations. There has been some profit through sales of company assets, but the board of directors has refused to declare a dividend. This last year, the firm’s accountants failed to file fed­eral in­come tax returns and the board refused to pay the tax. Armond takes a close look at the firm and protests to the board, in particular over the fail­ure to declare a dividend, but the board ignores the complaint.

a. Which of these events, if any, would form a ground for a court to order the dissolution of Brix and Mater, on Armond’s petition?

b. If the court denies the petition, could Armond and the other shareholders dissolve Brix and Mater?

Answer 1

Answer :-

a. Which of these events, if any, would form a ground for a court to order the dissolution of Brix and Mater, on Armond’s petition:-

• In the event that Armond's is minority partners, he can record an appeal to on ground of oppressive conduct towards minority partners since Brock has not answered to his grumblings.
• Brock has additionally to demonstrate that there is no miscalculate on his part and appeal to isn't preposterous.
• The organization has additionally rejected best make good on government expenses and isn't reacting to the protestations of his partners which is a severe conduct. Subsequently there is sufficient for such appeal to be filled.

b. If the court denies the petition, could Armond and the other shareholders dissolve Brix and Mater?

• The court can deny the appeal to and if court does that Armond and different investors can just get the organization broke up if an extraordinary goals is passed for disintegration of the organization . Additionally, on the off chance that the organization can't pay its obligations, any of the contributory can likewise document a request of for disintegration .