1.Pretend your friend has come to you for advice about a legal problem that she is having.  She said that she is a member of the Board of

Directors of a investment corporation, and that the corporation is in the process of going bankrupt after making some investments that did

not pan out.  She is now being sued by the shareholders.  Discuss whether she would be held liable under these circumstances.  Be sure to

discuss the duty of care that is required of directors and the business judgment rule.  

2.You are a judge. The following case has come before you. The shareholders of a corporation have sued the Jim, CEO and chairman of the

board of directors. It is alleged that the Board of Directors approved of the sale of the property to Jim for a cost of 1 million dollars. Jim

developed the property and was able to extract oil reserves from the property and as a result of the transaction recovered a profit of over 10

million dollars. When the shareholders found out about the transaction, it sued to have the transaction voided, or in the alternative, it sued the Board of the Directors for damages. Discuss how you would rule and what facts would influence your decision.

3. From the e-Activity,

a.Use the Internet to locate an article about an insider trading scandal that has been in the news in the past 10 years. Be prepared to discuss i        n class, 

b. Reference the article you located and propose three ways to prevent insider trading.

4. Analyze the repercussions of insider trading. Discuss whether or not you believe the consequences for this crime are fair.

Explain whether or not poison pills are consistent with existing state corporation law for allocating rights and responsibilities

s within the corporation. Support your decision with facts.

6.Compare and contrast proxy fights, cash tender offers, and leveraged buyouts. Choose the one you think is the most popular form of

takeover and support your answer with evidence or an example.