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Case Analysis: Green Med

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CASE ANALYSIS POCKETING THE GREENS I. Immediate Issue(s) or Problem(s) Immediate problems concerning this case study involves: a. Are Mr. de Guzman and the two other directors justified in buying the shares of Green Med without consulting the other members of the Board and shareholders? b. Are they liable in their actions and should be sued? c. Have all the considerations and alternatives already discussed by the Board in solving the lack of funds due to the reconstruction of the plant? Are Mr. de Guzman and the two other directors made an abrupt self-diagnosis decision of the situation of Cheap Parma? II. Basic Issue(s) or Associated Issue(s) First issue for this case is determining the scope of the duties and responsibilities of the members of the Board of Directors of Cheap Parma since this will determine if Mr. de Guzman and the other two directors' actions are in violation of the their obligations with the company. Second issue will be if the negotiations…show more content…
Progress reports should also be submitted by the representative and contracts they are entering into will include the liability of the representative if in case internal information of the company was used for his own personal gain. Regarding the lack of funds of Cheap Parma, they should pursue other ways that can help in the innovation and development of their product for the meantime that the legal battle is ongoing by apportioning a certain budget for their research and development costs in order for their company to be able to produce and innovate new and existing products giving them a fighting chance in the pharmaceutical arena. Shareholders can contribute additional capital for this new venture and borrow from outside sources for investment purposes. VI. Monitor and
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