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:

American Realist

An artist or writer who focuses on depicting subjects as they are in everyday life, often associated with the late 19th and early 20th centuries in the United States.

American Civil War

A conflict fought from 1861 to 1865 between the United States (Union) and eleven Southern slave states that declared secession and formed the Confederate States of America.

Manet

Édouard Manet, a 19th-century French painter, one of the first artists to approach modern-life subjects, bridging the gap between realism and impressionism.

European Painting

An art form originating from Europe, encompassing a variety of styles, techniques, and movements developed over centuries from the classical to modern periods.