Sam is a director and the majority shareholder of Cherokee Investments Corporation (CIC). Sam buys, for $1,500, an option to purchase a tract of real estate for $50,000. Sam forms a new corporation, Sam's Commercial Property, Inc. (SCPI), to hold the option. As the majority shareholder, and thus controlling director, of CIC, Sam orders CIC to authorize the purchase of the land from SCPI for $100,000. Sam then has SCPI buy the land and sell it to CIC, and loan the money to CIC for the purchase at a 10 percent interest rate. Olivia, a minority shareholder in CIC, complains to CIC's board, which takes no action. Olivia files a suit against Sam on CIC's behalf.
Will Olivia prevail? Explain your answer thoroughly.