Recently, Boho Ltd learned that one of the company's shareholders madestatements to the media which caused anger and embarrassment for theNew Zealand government. Boho Ltd's board of directors is concerned thatthe comments will negatively impact the company's chances of winninga million sales dollar with the New Zealand government. Analyse whetherBoho Ltd can validly expropriate the shares of this shareholder, and if so,how it should be carried out.

The general law power of expropriation is primarily concerned with the fact situation in which an…

Answered: Recently, Boho Ltd learned that one of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In its filings with the State of Ohio, Soft Serve Ice Cream, Inc. states as its corporate purpose, “the distribution and sale of ice cream and other dairy products.” Seeing an opportunity to increase revenues, the chief executive approves the use of corporate funds to of Soft Serve to open a gaming venue called SS Gaming. This would be a case of: a. An ultra vires act b. Piercing the corporate veil c. Establishing a de facto corporation d. An alter ego of the corporation
Dryden, a certified public accountant, audited the books of Elixir, Inc., and certified incorrect financial statements in a form that was filed with the Securities and Exchange Commission. Shortly thereafter, Elixer, Inc., went bankrupt. Investigation into the bankruptcy disclosed that through an intricate and clever embezzlement scheme Kraft, the president of Elixir, had siphoned off substantial sums of money that now support Kraft in a luxurious lifestyle in South America. Investors who purchased shares of Elixir have brought suit against Dryden under Rule 10b-5. At trial, Dryden produces evidence demonstrating that his failure to discover the embezzlement resulted merely from negligence on his part and that he had no knowledge of the fraudulent conduct. Is Dryden liable under the Securities Exchange Act of 1934? Why?
At a recent board meeting of Dartig Co, a non-executive director suggested that the company’s remuneration committee should consider scrapping the company’s current share option scheme, since executive directors could be rewarded by the scheme even when they did not perform well. A second non-executive director disagreed, saying the problem was that even when directors acted in ways which decreased the agency problem, they might not be rewarded by the share option scheme if the stock market were in decline. Explain the nature of the agency problem. Discuss the use of share option schemes and performance-related pay as methods of reducing the agency problem in a stock-market listed company such as Dartig Co. I need help with a more detailed explanation to the responses
What did Dennis Kozlowski of Tyco do that was so unethical or illegal in the world of business and accounting that ended him up in prison?
Which of the following statements is CORRECT? a. Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. b. Corporations and partnerships have an advantage over proprietorships because a proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. c. Conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers. d. A good goal for a firm's management is the maximization of expected EPS. e. For a stock to be in equilibrium, its intrinsic value must be greater than the actual market price.
When employees have a conflict of interest between their personal compensation and provision of truthful financial statements to shareholders, the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies. the external auditors should take the word of the employees and the management about the value of such securities. the accounting standards' supervisory board should be required to audit such financial companies. the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts. CO
ne kai A – F: Your client is a public company in which you maintain a small financial interest. How is your ability to perform the audit potentially affected by the fact that you own a small percentage of the company?
3.3) You work for the Chartered Accountancy firm Bevan&Bevan Ltd, which has, for many years, been engaged to perform accounting and corporation tax work. Currently, you have discover that some practices are incorrect, and some behaviours could even be label as tax evasion. Required: Explain the code of conduct and its importance for preventing such behaviours and actions that could be taken.
A newspaper accuses a public figure of being a mafia even though they know this is not true. The public figure sues and both set of lawyers agree it is likely that the public figure will win the case and receive damages in the order of $1million. There is no possibility of the case being resolved before the financial statements are finalized. Required: Discuss how the litigation will be represented in the financial statements of both entities; the newspaper and the public figure.
The Sarbanes-Oxley (SOX) Act of 2002 is federal legislation designed to protect publicly held companies from frivolous litigation. The Act makes it m pursue litigation based solely on commentary by company executives and decreased penalties for violation of existing securities laws. True or False True False
Which of the following statements is/are correct? O a. The ban on simultaneously offering consulting and auditing services to economically relevant companies within the framework of the FISG results from the bad experiences that BaFin had with corresponding offers in the context of the Wirecard scandal. O b. Violations of the so-called "blacklist" lead to significant fines being paid by the auditing company. Oc. According to the Financial Market Integrity Strengthening Act, companies are obliged to set up an audit committee to monitor the quality of the audit. O d. The external rotation of auditing firms requires more frequent tendering processes for auditing services.
Which of the following is a remedy for the Agency Problem in the U.S.? Shareholders have the right to elect the board of directors, which can serve as an effective check if the board remains independent of management. Shareholders have the right to overrule any managerial decisions. The U.S. government directly intervenes in company decisions to ensure shareholder interests are protected. The board of directors should always take management roles in the company.

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