12 May DID DWECK BREACH ANY FIDUCIARY DUTIES?
A. Lucia has acquired one share of common stock of a multimillion-dollar corporation with over 500,000 shareholders. Lucias ownership interest is so small that she is questioning what her rights are as a shareholder. For example, she wants to know whether this one share entitles her to (1) attend and vote at shareholders meetings (2) inspect the Background image of page 1 corporate books, and (3) receive yearly dividends. Discuss Lucias rights in these three matters. Please explain in one to two paragraphs.B. Kids International Corp. produced children’s wear for Wal-mart and other retailers. Gila Dweck was a Kids director and its chief executive officer. Because she felt that she was not paid enought for the company’s success, she started Success Apparel to compete with Kids. Success operated out of Kids’ premises, used its employees, borrowed on its credit, took advantage of its business opportunites and capitalized on its customer relationships. As an “administrative fee,” Dweck paid Kids 1 percent of Success’s total sales. Did Dweck breach any fiduciary duties? Explain in one to two paragraphs.A. Lucia has acquired one share of common stock of a multimillion-dollar corporation with over 500,000 shareholders. Lucias ownership interest is so small that she is questioning what her rights are as a shareholder. For example, she wants to know whether this one share entitles her to (1) attend and vote at shareholders meetings (2) inspect the Background image of page 1 corporate books, and (3) receive yearly dividends. Discuss Lucias rights in these three matters. Please explain in one to two paragraphs.B. Kids International Corp. produced children’s wear for Wal-mart and other retailers. Gila Dweck was a Kids director and its chief executive officer. Because she felt that she was not paid enought for the company’s success, she started Success Apparel to compete with Kids. Success operated out of Kids’ premises, used its employees, borrowed on its credit, took advantage of its business opportunites and capitalized on its customer relationships. As an “administrative fee,” Dweck paid Kids 1 percent of Success’s total sales. Did Dweck breach any fiduciary duties? Explain in one to two paragraphs.
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