Steps For the Discussion:

Please remember as we discussed in the zoom session, you are debating    the DEBATE THIS  prompt. You are going to write an 1 introductory  paragraph stating your position then 3 supporting paragraphs, and lastly 1 conclusion paragraph (total of 5 paragraphs). Feel free to incorporate the fact pattern I gave you as  an   example to help prove your point. But you do not necessarily have  to   answer the questions posed. I want to see reasoned analysis and   critical  thinking. There is no right or wrong answer.  Feel free to  use  the  internet for all supporting resources, cases, journal,  articles,  etc…  Make sure that you cite your sources.  

1. Debate This: Takeovers – Law Firm 6

Mario  Bonsetti and Rico Sanchez incorporated Gnarly Vulcan Gear, Inc. (GVG),  to manufacture windsurfing equipment. Bonsetti owned 60 percent of the  corporation’s stock, and Sanchez owned 40 percent. Both men served on  the board of directors. Hula Boards, Inc., owned solely by Mai Jin Li,  made a public offer to buy GVG stock. Hula offered 30 percent more than  the market price per share for the stock, and Bonsetti and Sanchez each  sold 20 percent of their stock to Hula. Jin Li became the third member  of the GVG board of directors. An irreconcilable dispute soon arose  between Bonsetti and Sanchez over design modifications of their popular  Baked Chameleon board. Despite Bonsetti’s dissent, Sanchez and Jin Li  voted to merge GVG with Hula Boards under the latter name, Gnarly Vulcan  Gear was dissolved, and production of the Baked Chameleon ceased. Using  the information presented in the chapter, answer the following  questions.

1. What rights does Bonsetti have (in most states) as a minority shareholder dissenting to the merger of GVG and Hula Boards?
2. Could the parties have used a short-form merger procedure in this situation? Why or why not?
3. What is the term used for Hula’s offer to purchase GVG stock?
4. Suppose  that after the merger, a person who was injured on the Baked Chameleon  board sued Hula (the surviving corporation). Can Hula be held liable for  the injury? Why or why not

Debate This:
Corporate law should be changed to prohibit management from using most of the legal methods currently used to fight takeover

Steps For the Discussion:

Please remember as we discussed in the zoom session, you are debating    the DEBATE THIS  prompt. You are going to write an 1 introductory  paragraph stating your position then 3 supporting paragraphs, and lastly 1 conclusion paragraph (total of 5 paragraphs). Feel free to incorporate the fact pattern I gave you as  an   example to help prove your point. But you do not necessarily have  to   answer the questions posed. I want to see reasoned analysis and   critical  thinking. There is no right or wrong answer.  Feel free to  use  the  internet for all supporting resources, cases, journal,  articles,  etc…  Make sure that you cite your sources.  

2.     Debate This: Insider Trading – Law Firm 6

Dale  Emerson served as the chief financial officer for Reliant Electric  Company, a distributor of electricity serving portions of Montana and  North Dakota. Reliant was in the final stages of planning a takeover of  Dakota Gasworks, Inc., a natural gas distributor that operated solely  within North Dakota. On a weekend fishing trip with his uncle, Ernest  Wallace, Emerson mentioned that he had been putting in a lot of extra  hours at the office planning a takeover of Dakota Gasworks. When he  returned from the fishing trip, Wallace purchased $20,000 worth of  Reliant stock. Three weeks later, Reliant made a tender offer to Dakota  Gasworks stockholders and purchased 57 percent of Dakota Gasworks stock.  Over the next two weeks, the price of Reliant stock rose 72 percent  before leveling out. Wallace sold his Reliant stock for a gross profit  of $14,400. Using the information presented in the chapter, answer the  following questions.

1. Would registration with the SEC be required for Dakota Gasworks securities? Why or why not?
2. Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Why or why not?
3. What theory or theories might a court use to hold Wallace liable for insider trading?
4. Under  the Sarbanes-Oxley Act, who would be required to certify the accuracy  of the financial statements Reliant filed with the SEC

Debate This:
Insider trading should be legalize