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Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921 Exercise 22
After Lanier Carson retired from Kelley Manufacturing Company (KMC), James Martin became CEO and a member of the board. Timothy Maxwell became president, and he and Martin became the trustees of KMC's Employees Stock Ownership Plan (ESOP). The ESOP owned all the stock of KMC. Statements of account issued to employees who were ESOP participants reflected that the accounts were measured in "shares" vested in each participant. ESOP participants were referred to as shareholders. Martin and Maxwell got in a dispute with Carson. A few months later, Maxwell and Martin were fired by KMC, based on Carson's vote of 135 employees' proxies and powers of attorney. Also, both were removed as trustees of the ESOP, and Carson was voted the sole trustee of the ESOP and chairman of the board of KMC. Martin and Maxwell still had interests in the ESOP, with Martin's ESOP account being the largest single owner of an interest in KMC. When KMC did not allow them to inspect the proxies/powers of attorney and the list of shareholders at the time they were fired, they sued. Should they be allowed to inspect those corporate records?
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Martina and Max became the new CEO and v...
Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
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