Tank Is a Director and the Majority Shareholder of Unique

question 25

Essay

Tank is a director and the majority shareholder of Unique New Investment Corporation (UNIC).Tank buys,for $1,500,an option to pur?chase a tract of real estate for $50,000.Tank forms Vista Property,Inc.,to hold the option.As the majority shareholder,and thus controlling di?rector,of UNIC,Tank orders the firm to authorize the pur?chase of the land from Vista Property for $500,000.Tank then has Vista Property buy the land,sell it to UNIC,and loan the money to UNIC for the purchase at a 10 percent interest rate.Wim,a minority shareholder in UNIC,com?plains to UNIC's board,which takes no action.Wim files a suit against Tank on UNIC's behalf.Will Wim prevail? Explain.

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Definitions:

Expected Behaviours

The actions or reactions anticipated from a person in a given situation based on social norms or organizational policies.

Status Symbols

Status symbols are items or indicators that signify the social position or status of an individual within a community, often associated with wealth, occupation, or prestige.

Conjunctive Tasks

Tasks that require the cooperation of all group members to be completed successfully, where the performance is determined by the least capable member.

Person-Role Conflict

A situation where an individual's personal values, beliefs, or behaviors are in conflict with the expectations of their role.