A private corporation owned by 35 shareholders is worth $1.7 million.
QUESTION
A private corporation owned by 35 shareholders is worth $1.7 million. The corporation loses a lawsuit worth $3 million. What is the value of any personal property of the shareholders that can be taken to pay the settlement? Need help. Thanks
Solution: The value of personal property of the shareholders that an be taken to pay the settlement would be (3 1.7 ) = 1.3 million . The corporation being private and the suit being more than the value of the company the personal assets of the 35 shareholders can be taken to pay of the suit amount andthe personal assets can be¦
n accordingly . All the 35 shareholders are equally liable to pay the amount of suit and the personal assets can be taken to pay off the amount which the company cannot pay on its own should be borne by the 35 shareholders .
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