Case Study: For those of you unfamiliar with the F.I.R.A.C Method of coming to conclusions regarding baptistery studies of art law, first the person essential state the occurrence, and then the issues, the virtue and finally show how that law applies and conclude on behalf of every side. Fact: Jim, Joe and chase each owned leash of the shares of Seizen, Inc., a close held companionship. Each as employed by the potty as an officer and director. The good deal was primarily convolute in the sure earth phylogeny employment although occasionally it took reward of business opportunities in areas unrelated to real estate development. Bob, in consideration of retirement, requested Jim and Joe to adopt, on behalf of the corporation, a progressive tense dividend policy and a plan for the corporation to purchase his shares of seam over a period of 10 eld, at a price to be mutually agreed upon. Although Bob had abandoned m either years of service to the corporation, Jim and Joe refused to authorize some(prenominal) dividend payments and also refused to purchase any of Bobs shares of stock in the corporation.
Jim and Joes close was based upon what they considered to be in the best interest of the corporation and also on the fact that Bob had previously taken personal advantage of a real estate development investment opportunity that the corporation had been advised about and was unable to take advantage of because of financial difficulty. Issue: Was Bob in violation of rule 10b and 16b? Rule: 10b- Anybody who is an insider must non trade on the basis of inside or non frequent information to anyone else who is not possession to. 16b-Prohibits! anyone who owns 10% or more(prenominal) of a corporation from trading stock of that corporation indoors six months of a transaction. (West 433) Application:... If you want to get a full essay, order it on our website:
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