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Question
Brock is a shareholder of Competent Homebuilders Corporation (CHC). For the last few years, business has not been profitable for CHC. 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. Brock 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. Which of these events, if any, would form a ground for a court to order the dissolution of CHC, on Brock's petition? If the court denies the petition, could Brock and the other shareholders dissolve CHC?Answer
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Related questions
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