Legal Question in Business Law in California

what are all the issues

Richard was CEO of VERT, Inc., and was also a shareholder. VERT, Inc. was a subsidiary of PMP, Inc. PMP, Inc. was bought by a group of investors, who became majority shareholders. Richard retained his stock and was kept on as the CEO of VERT, Inc. by the new owners. Later, Mitchell, the President of PMP, INC. decided to replace Richard. As a part of the termination, Mitchell agreed that PMP. Inc would purchase Richard's stock for $2.45 million. Soon after Richard's release, Mitchell was fired and PMP, Inc. was merged into another company. PMP, Inc. refused to purchase Richard's stock, so Richard sued. PMP, Inc. defended the action on the basis that it had not authorized Mitchell to enter into the stock purchase agreement and therefore, they were not liable. As the Judge hearing the case how would you rule on PMP, Inc.'s liability to Richard's for the purchase of his stock?


Asked on 12/27/04, 5:37 pm

3 Answers from Attorneys
Barry Snyder Snyder Law

Re: what are all the issues

The company loses.

Read more
Answered on 12/27/04, 5:55 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: what are all the issues

I would rule that the student who posted his homework question on the internet so that he would not have to (*gasp*) actually learn the material has waived his right to a passing grade.

Read more
Answered on 12/27/04, 6:11 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: what are all the issues

My gut says sold. I would need to see all the documents to confirm as well as assess all communications. Written agreement or verbal? You may contact me.

Read more
Answered on 12/27/04, 8:24 pm


Related Questions & Answers

More Business Law questions and answers in California