The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
expand_more
expand_more
format_list_bulleted
Question
Chapter 28, Problem 6BCP
Summary Introduction
Case summary:Three shareholders of company iS decided to sell their stock through a company WTFC. The share was restricted securities and the restrictive legend was wrongly removed from the shares. WTFC sold more than 2.3 million shares to the public.
To explain: The violation of Securities Act by WTFC.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
When a corporation wishes to issue certain securities, it must provide sufficient information for an unsophisticated investor to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that is "material."
What sort of information would an investor consider "material" pursuant to the Securities Exchange Act of 1934? Be sure to explain the Act and provide two recent case examples where material representation or omission amounted to securities fraud in violation of SEC Rule 10b-5.
Considering the following statements true or false.
1.Circumstances whereby the CFA member breaches client confidentiality are acceptable in circumstances directed by the client in writing.
2.Mosaic theory damages the interest of all investors by disrupting the smooth functioning of forward markets and lowering investor confidence.
3.As a philosophical ethical principle, when analysing actions undertaken, it is acceptable that an act can be seen as good or bad regardless of the underlying/relevant circumstances.
4.As part of Standard IV, as a superior, it is not your responsibility to ensure ethical behaviour of your subordinates.
5.Premium investment services should be designed in such a way that, while beneficial to those who are in a position to take advantage of them, they are not unfairly disadvantages to other classes of clients.
Jaya Sdn. Bhd. (Jaya) is a subsidiary of Delta Bhd. (Delta). Jaya has decided toremove its company auditor before the expiration of term of office in order toconform to the wishes of Delta, its holding company.Advise the board of directors of Jaya on the procedure to remove the existingauditor, and on the appointment of a new auditor for Jaya.
Please advise according to Company act 2016 : base on below section
Section 271(1) , 271(2)
Section 276(1), 276(3)
Section 277, 277(2)
Chapter 28 Solutions
The Legal Environment of Business: Text and Cases
Knowledge Booster
Similar questions
- A proxy is a representative of a (shareholder, officer, director) who is liable to (vote, sell shares, buy shares) on the shareholder's behalf at a shareholder meeting. Proxy agreements are generally valid for (eleven months, twelve months, thirteen months). At the time of the shareholder meeting, Francescas's proxy agreement was (fourteen months, thirteen months, twelve months) old. Therefore, Francesca's proxy agreement with her representative (expired, did not expire), and her representative (may not, may) vote on Franscesca's behalf. What if the Facts were Different Assume that Brenda purchased Mike's 100 shares of stock and Fransesca signed a new proxy agreement on May 15, 2020. Brenda's purchase of stock on May 15, 2020, is (after, before) the record date. On the record date, (Mike, Brenda) is the owner of the 100 shares and (may not, may) vote based on ownership of the 100 shares at the shareholder meeting. If Francesca signed a proxy agreement on May 15, 2020, it is (more…arrow_forwardMusab who is appointed as liquidator of the company had acted beyond his scope of authority as claimed by third parties. Which one of the following is IRRELEVANT to this situation? Liable to apologize to the third parties Liable to the partners of the company Liable to the Auditors of the company All of the given optionsarrow_forwardVerisony sells iPhones to the public. Verisony sold and delivered an iPhone to Muriel oncredit. Muriel executed and delivered to Verisony a promissory note for the purchaseprice and a security agreement covering the iPhone. Muriel purchased the iPhone forpersonal use. Verisony did not file a financing statement. Is Verisony’s security interestperfected? Explain.arrow_forward
- which is wrong The IPO tax applies only to the initial public offering of a closely held corporation. A sale is not subject to stock transaction tax if the shares were not listed and sold through the Philippine Stock Exchange (PSE). The sale, barter or exchange, including block sale, of listed stocks through the Philippine Stock Exchange (domestic or foreign stocks), other than by dealers in securities, is subject to a tax of 60% of 1% (6/10 of 1%) based on gross selling price. The sale, barter or exchange, including block sale, of listed stocks through the Philippine Stock Exchange (domestic or foreign stocks), other than by dealers in securities, is subject to a tax of 50% of 1% (5/10 of 1%) based on gross selling price.arrow_forwardThe liability for special assessment bonds for which the city is not obligated in any manner should be recorded in a Multiple Choice Debt service fund general journal. None of the fund or governmental activities general journals, but should be disclosed in the notes to the financial statements. Governmental activities general journal. Custodial fund general journal.arrow_forwardMikhail and Dana Jackson, doing business as M&D Enterprises, Inc., bought a retail electronics store under a franchise agreement from a national company, Tunes Hut. The Jacksons borrowed from State Bank to pay for the business and signed loan documents and a financing statement, which identified the Jacksons as "Debtors." Elsewhere on the financing statement, the bank identified "M&D Enterprises, Inc., Tunes Hut, Dana K. Jackson, Mikhail C. Jackson" as "Debtors." The statement covered, in part, the store inventory. The bank filed the financing statement with the proper government agency. Three years later, the store closed. Tunes Hut terminated the franchise and took possession of the inventory, claiming the Jacksons and M&D owed Tunes Hut $6,394.73. State Bank filed a suit in a state court against Tunes Hut, claiming a perfected security interest in the inventory with priority over Tunes Hut's claim. Did the bank's security interest take priority over Tunes Hut’s…arrow_forward
- If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director and how are these determined by the Courts?arrow_forwardThe pre-emptive rights of stockholders in a corporation are not statutory rights, but are ____________ and exist even when no specific grant or recognition of such right is provided for in statutory law. inherent rights common law rights provided by the Corporation Code implied rights A share held by a third person to be released only upon the performance of a condition or the happening of a certain event contained in the agreement. Common share Preferred share Escrow share Treasury share One of the attributes of a corporation is that it is an artificial being with a separate personality. As a result of this attribute, the corporation: is not liable for torts committed by its officer or agent. is liable for torts committed by its officer or agent. is liable for torts by its stockholders. is liable for torts committed by its stockholders and officers or agents. The “Grandfather Rule” in Corporation law means that: corporate stockholdings would be traced from the nationality of the…arrow_forward21. Solder Welding Corporation is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, Solder Welding is subject to the direct corporate governance requirements of Group of answer choices the federal government. any other public company with which Solder Welding exchanges shares. the state in which Solder Welding incorporated. any state in which Solder Welding does business.arrow_forward
- In Corporation Law, the application of the principle of “Centralized Management” has brought about the jurisprudential doctrine of --- Theory of Concession Business Judgment Rule Doctrine of Limited Liability. Ultra Vires Doctrine. SEC Opinion No. 04-43, dated 26 October 2004, held that a temporary or permanent cessation of operations of a corporation which does not involve the shortening of corporate term or a formal dissolution of the corporation, may be pursued by the Board of Directors only with ratification by stockholders owning or representing at least two-thirds (2/3) of the outstanding capital stock, although not particularly governed by the Corporation Code, is in recognition, and implementation, of the --- Theory of Concession. Theory of Delegated Power Theory of Business Enterprise Doctrine of Strong Juridical Personality Whereas, a decrease of the authorized capital stock will not be approved by the SEC if the effect is to prejudice the rights of the creditors, and…arrow_forwardShares of Unity Software, which provides technology to video game developers, advanced as much as 48 per cent in their public debut on Friday, lifting the valuation of the company briefly above $20bn… Its stock rose as high as $76.79 in early trading after the company sold 25m shares at $52 a piece, raising $1.3bn in proceeds. Unity’s shares, which trade on the New York Stock Exchange… slipped from their early highs and ended the day up 31 per cent. The trading debut came after Unity increased the range marketed to investors from between $34 and $42 per share to between $44 and $48 per share on Wednesday, reflecting strong demand for its offering. The company estimates that half of the top 1,000 mobile games on Apple’s App Store and Google Play were made using its platform, which has expanded to help game developers make money from advertising. The business made a net loss of $163.2m on revenues of $541.8m last year, which grew 42 per cent from the previous year. The IPO comes…arrow_forwardWhat does the term "Affiliated Party mean? ΟΛ Any person who directs or participates in the conduct of alluss of a bourse and who is an officer, stockholder, owney or other person who directly controls a com Any person who is related to the writing insurance agent and works for the same based insurance comparty Any person who has the authority to bind the insurer to the risk of being assumed without requiring a bone or appointment Every group, association or other organization that prepares policy forms and makes underwriting rules axikvit to the setting of rates and underwing clos B. OC O Darrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education