Chapter 11 bankruptcy provides for: a. adjustment of debts of a municipality b. reorganization of a corporation c. liquidation proceedings d. adjustment of farmers' debts
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Chapter 11 bankruptcy provides for:
a. adjustment of debts of a municipality
b. reorganization of a corporation
c. liquidation proceedings
d. adjustment of farmers' debts
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- BZ” is a recreational club which was organized to operate golf course for its members with an original authorized capital stock of P100M. The articles of incorporation nor the by laws did not provide for the distribution of dividends although there is a provision that after dissolution, the assets shall be given to a charitable corporation. Which of the following statement is true based on existing This is a stock corporation since its articles of incorporation and by-laws are silent, it is presumed that it can declare dividends. This is a non-stock corporation because the articles of incorporation did not provide for the distribution of dividends. The stockholders or members must amend the articles of incorporation and state clearly whether the corporation is a stock corporation or a non-stock corporation. This is a non-stock corporation because the assets after dissolution are to be given to a charitable institution.23 - Which of the following is the process of converting a company from one legal form to another, that is, as a trading company of another type that will maintain its legal and economic identity and continuity, with a different status and title suitable for the company type?A) Liquidation in CompaniesB) Company mergerC) Division in CompaniesD) Re-establishing a CompanyE) Type changeDescribe one the conditions that must be satisfied before a derivative suit can be instituted. A. The company is under the control of the majority shareholders/directors. B. A wrong must not have been done to the company by the majority shareholders. C. Any damages awarded will not go to the company but to plaintiff shareholder. D. An individual shareholder or minority decides to sue the wrongdoers for or on behalf of company.
- Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2012. In 2013, the corporation had large profits and a surplus from which it might properly have declared dividends. The directors refused to do so, however, instead using the surplus to purchase goods necessary for the corporation’s expanding business. The corporation earned a small profit in 2014. The directors at the end of 2014 declared a 10 percent dividend on the common stock and an 8 percent dividend on the preferred stock without paying preferred dividends for 2013. a. Is Bunyan entitled to dividends for 2012? For 2013? b. Is Bunyan entitled to a dividend of 10 percent rather than 8 percent in 2014?Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?John Bunker has assets of $130,000 and liabilities of $185,000 owed to nine creditors. Nonetheless, his cash flow is positive, and he is making payment on all of his obligations as they become due. I. M. Flintheart, who is owed $22,000 by Bunker, files an involuntary petition in bankruptcy under Chapter 7 against Bunker. Bunker contests the petition. What result? Explain.
- Albert, Betty, and Carol own and operate the Roy Lumber Company, a limited liability partnership (LLP). Each contributed one-third of the capital, and they share equally in the profits and losses. Their LLP agreement provides that all purchases exceeding $2,500 must be authorized in advance by two partners and that only Albert is authorized to draw checks. Unknown to Albert or Carol, Betty purchases on the firm’s account a $5,500 diamond bracelet and a $5,000 forklift and orders $5,000 worth of logs, all from Doug, who operates a jewelry store and is engaged in various activities connected with the lumber business. Before Betty made these purchases, Albert told Doug that Betty is not the log buyer. Albert refuses to pay Doug for Betty’s purchases. Doug calls at the mill to collect, and Albert again refuses to pay him. Doug calls Albert an unprintable name, and Albert then punches Doug in the nose, knocking him out. While Doug is lying unconscious on the ground, an employee of Roy…art IScenario IAgroVate, a Delaware corporation, is the target of a bid from Bijoux. Bijoux had originally approached AgroVateâs board with an offer to buy the company, but AgroVate turned down the offer. Now, in newspaper ads and direct mail to shareholders, Bijoux has initiated a tender offer to shareholders well above market price.The Board of Directors of AgroVate consists of the three Maxxo brothers, Happy, Dopey and Sleepy, as well as eight other directors who are not related to the Marx Brothers. AgroVateâs bylaws provide that eight directors constitute a quorum.Manly Pearson, the president of Bijoux, wants to take control of AgroVate and merge it with Bijoux. He plans to replace the current board and sell off AgroVateâs widget finishing division, which he thinks is dragging the company down. Pearson has no interest in the widget business; Bijoux makes service uniforms; Pearson simply sees the takeover as a business…The stock in Hotel Management, Inc., a hotel management corporation, was divided equally between two families. For several years, the two families had been unable to agree on or cooperate in the management of the corporation. As a result, no meeting of shareholders or directors had been held for five years. There had been no withdrawal of profits for five years, and last year the hotel operated at a loss. Although the corporation was not insolvent, such a state was imminent because the business was poorly managed and its properties were in need of repair. As a result, the owners of half the stock brought an action in equity for dissolution of the corporation. Will they succeed? Explain.
- Zenith Steel Company operates a prosperous business. In January, Zenith’s chief executive officer (CEO) and president, Roe, who is also a member of the board, was voted a $1 million bonus by the board of directors for the valuable services he provided to the company during the previous year. Roe receives an annual salary of $850,000 from the company. Black, Inc., a minority shareholder in Zenith Steel Company, brings an appropriate action to enjoin the company from paying the $1 million bonus. Explain whether Black will succeed in its attempt.VIOLETS Company purchased 5,000 shares of POPPY Company par ₱100 at ₱120 in March 2020 VIOLETS received a share dividend of 1 share for every 5 owned on August 30, 2020. On September 15, 2020, the firm received a cash dividend of ₱10 per share. On October 1, 2020, VIOLETS was granted the right to purchase 1 share at ₱105 for every 4 rights held. The share had a market value of ₱115 and the right had a value of ₱5 on the date the rights were received. On December 15, 2020, the company sold 2,000 rights at ₱7.50 and exercised the remaining rights. What is the average unit cost of the total investment as of December 31, 2020?Omega Ltd. is having a paid-up capital of one billion rupees. Ocean Ltd. which is one of the promoters of Omega Ltd holds a paid-up capital of two hundred million rupees. The articles of the association of Omega Ltd provide that the company’s Board of directors would constitute 12 directors. There are at present 12 directors on the Board of Omega Ltd. including one managing director (Mr. Karan). The Ocean Ltd wishes to replace the MD (Mr. Karan) by appointing a new MD Mr. Rohan and also to appoint one new independent director (Mr. Sohan) on the Board of Omega Ltd. For this purpose, Ocean Ltd has made a written request to the Board of Omega Ltd to convene an extraordinary general meeting to replace the MD and appoint a new independent director on the Board on 16th October 2021. The Board of Directors in its meeting on 29th October 2021 dismissed the request of Omega Ltd. on the ground that not more than 12 directors can be appointed on the Board of the company. Ocean Ltd. is desirous to…