Case summary: Two people JK and MT were involved in a case in a Texas state court. Both of them alleged each other for fraud and misconduct to obtain the control of the company C. The person JK formed a company KR whose most of the shareholders were that of the company C. Meanwhile, he filed a petition for Chapter 7 liquidation in the bankruptcy court and failed to inform the court about his interest in the company KR. Though the person JK’s share belonging to that of the company C was passed to the bankruptcy trustee, he called a meeting of the shareholders of the company C in which the person MT was not included and voted those shares for removing the person MT from the board. The company C board then dismissed the company C’s claims against the person JK in the case with the person MT.
To find:The sufficient grounds for the bankruptcy court to dismiss the person JK’s bankruptcy petition.
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Chapter 15 Solutions
The Legal Environment of Business: Text and Cases
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