Oahe enterprises was formed by the efforts of emmick who, Ask an Expert

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Oahe Enterprises was formed by the efforts of Emmick, who acted as a promoter and contributed shares of Colonial Manors, Inc. (CM), stock in exchange for stock in Oahe. The CM stock had been valued by CM's directors for internal stock option purposes at $19 per share.

However, one month prior to Emmick's incorporation of Oahe Enterprises, CM's board reduced the stock value to $9.50 per share.

Although Emmick knew of this reduction before the meeting to form Oahe Enterprises, he did not disclose this information to the Morrises, the other shareholders of the new corporation. Can Oahe Enterprises recover the shortfall?

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Management Theories, Management Studies

Category:- Management Theories
Reference No.:- M92197253

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