WNIE Corp was founded by Phil Ariganello and is owned by Cortney Thibodeau. Phil Ariganello is the acting CEO. For this case study, I am using the business I created and founded under my wife’s name. My wife is the sole owner for award purposes. The reason this business was founded by my wife is that women small businesses have first opportunity to win award contracts. Veteran owned small business are also awarded first on some occasions. My wife and I did the research and CPA explained that opening in my wife name was in our best interest. This company was created to make as much profit as possible as companies should. Our main objective is to offer an industry solution while earning revenue. In order to have a successful business we …show more content…
Since Clyde and Fresco have owner ship of the company, they have a say in what the company may or may not do. In this scenario Clyde and Fresno are against the movement of the corporation and feel the direction is not in the best interest of the shareholders. The board members felt they had a good sense of the company direction. This direction was costly to the corporation and the shares value fell. In this scenario both Clyde and Fresno have the right to take this case to litigation as they voiced their concern of heading the corporation in this direction. Since the company is publicly traded the decision of board members is considered final. Still the major shareholders hold weight and they could have a lawsuit. The chances of success to Clyde and Fresno is high in this case, only if the they discovered that the board of directors engaged in fraud, illegal activities, or were grossly negligent while managing the corporation. Negligent would be the driving factor used and the case would have to prove it. The board would have to prove a case of having the insight that the company could maintain the same returns. The reason why cases like these are so important is that a board could essentially use company funds and bankrupt a company. The company could have a special interest in apple orchards that their family owns. The company could essentially buy they farms at an inflated price creating wealth for themselves. This could all be proven during the discovery face of the case if it went to