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Case Study Of Cheap Pharma

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POCKETING THE GREENS I. Immediate Issue(s) or Problem(s): The shareholders of the Cheap Pharma sued Mr. de Guzman and the other two directors demanding that they render an accounting and return whatever profits they made from the Green Med transaction to cheap Pharma. In the given instance, the members of the board are having dispute regarding the share of claims benefited from purchasing of patent from the Green Med. I hereby assume that there is no formal agreement among them whether the company will have a portion of return of investment from the transaction entered personally by some of its board of directors. On my perception, with the knowledge of all board of directors, the three board members bought the shares of Green Med out of their own pocket so the Cheap Pharma won’t fail to comply with its commitment. However, they did not draft an agreement stating the position of Cheap Pharma on the said transaction. II. Basic Issue(s) or Associated (Issue(s): • Declining sales profit due to tight competition • Rebuilding the burnt plant/factory • Budget earmarked to purchase the agreed- upon shares from the Green Med was reallocated to the reconstruction of the factory. III. Issue(s) Analysis or Information Summary: Facts: The Cheap Pharma is…show more content…
de Guzman and company from the Green Med, I’d suggest that they (the Cheap Pharma) buy the shares of the three, to legalized the issues of revenue sharing. But, if in case Mr. de Guzman and partners refuse to sell their shares for Cheap Pharma’s favor, the board should look for other pharmaceutical company who is open for alike terms just like that of Green Pharma. Or, if on the other hand the loan be denied, I’d recommend that the stockholders should shed out additional money out of their pockets equivalent to their share’s percentage so as to meet the company’s financial
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