Alannis and Jake Each Hold 50 Percent of the Shares

question 71

True/False

Alannis and Jake each hold 50 percent of the shares in JagCorp,a limousine rental business.All management decisions since incorporation have been agreed to by both of them.Now they find that they cannot agree on how the corporation should be operated.Alannis wants the corporation to give up the limousine rental business and become an Avis rent-a-car franchisee.Jake wants to continue with the existing business as it is.They have been battling for six months but are deadlocked.In these circumstances,Alannis could get a court to order that the corporation be wound up.

---

Definitions:

Incorporators

Incorporators are individuals or entities that participate in the creation and filing of a corporation's founding documents with relevant state authorities.

Charter

A document that establishes the principles, functions, and organization of a corporation or city.

Incorporation Papers

are legal documents filed with a governmental body to legally document the creation of a corporation.

Corporation Powers

The legal rights endowed to a corporation, allowing it to act as a single entity and carry out its business.