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Guy Is Hot Java Company's Majority Shareholder

question 17

Essay

Guy is Hot Java Company's majority shareholder. Guy is interested in developing a reward system for the company where dividends double for any shareholder who takes a large risk by owning more than 35 percent of the shares. Guy is the only shareholder who owns that much stock. Does Guy owe a duty to Hot Java or its minority shareholders in this situation?


Definitions:

Authority

The right to influence another person.

Formality

The level of adherence to established rules, procedures, and conventions in a particular context.

Transnational Organization

An organization in which the global viewpoint supersedes national issues.

National Issues

Problems, concerns, or challenges that affect a country as a whole, often relating to politics, economy, or social aspects.

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