Uniform Gifts to Minors Act (UGMA). At one point, almost half of the children’s money was invested in penny stocks. All the penny stocks except one suffered substantial losses. Buder’s ex-wife, Sartore, sued him, alleging that he had breached his fiduciary duty owed to the children under the UGMA. She sought to recover the funds lost by Buder’s investment of the children’s funds in penny stocks. Who wins? Buder v. Sartore, 774 P.2d 1383, Web 1989 Colo. Lexis 227 (Supreme Court of Colorado) Who wins
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TOPIC |SECTION, EXPLANATION |CASES | | |PARTNERSHIP |3 element of partnership (s.1) (s.2 (1)): | | | |1. Carrying on business (call ‘continuity’ test) |- Smith v Anderson (1880) | | |
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client’s right to sue (i.e., standing to sue) because the client and accountant are in privity. Privity refers to the existence of a direct connection or contractual relationship between parties. A client may sue an accountant for breach of fiduciary duty. A fiduciary relationship is usually considered to exist between two persons when one of them is under a duty to act or give advice for the benefit of another upon matters within the scope of the relation. It is well settled that in most engagements
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Many people dream of becoming a CEO of a big corporation. The money and power involved is enormous. That dream came true for a man by the name of Dennis Kozlowski. If you don’t know this man, he was the CEO of Tyco. He assisted Tyco in becoming one of the biggest corporate giants in the world. Dennis Kozlowski at one point was worth an estimated $500 million. This seems great, right? Where it all went wrong was when Dennis Kozlowski and his CFO Mark Schwartz did the unthinkable by taking $120
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9-1. According to the Bureau of Census a special district includes “local entities (other than counties, municipalities, townships, or school districts) authorized by state law to provide only one or a limited number of designated functions, and with sufficient administrative and fiscal autonomy to qualify as separate governments.” As can be seen from this definition a special district is a type of special purpose government. A primary government is broader in scope than a special district
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to prove potential aiding and abetting of board members where enhanced scrutiny needs to be applied by the court. The plaintiffs have the burden of proving the conduct fell out of the reasonableness range when accusing defendants of a breach of fiduciary duty Id at 84. Enhanced scrutiny is the middle tier of judicial review because it involves situations where subtle structural and situational conflicts do not rise to the level of fairness review but is above the business judgment rule because it
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following reasons: * Incremental value creation is less technological * Not a broad base product * A very general product * Competitive and powerful competitors. * Market less mature. * Product developed based on just one firm.(Fiduciary) * Increase in number of employees translating to increase in expenditure. * Spent more than 180 hours in gaining customer insight translating to 4-6 months unproductive time. * Non scalable product. Company History and growth
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Why Does Someone Own A Business? • View of Authors. Epstein believes that people start businesses to make money. Roberts and Shepherd believe that this is basically correct, but that businesses are organized to "create value." Shepherd also believes that businesses can be started to help people. • Other Experts. Other experts such as Milton Friedman look at corporations solely as a way to maximize profits and shareholder value. Principal and Agent • Principal. "'Principal' is a word used to
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Contents and Formatting 3 Introduction 3 Independent Auditor’s Report 5 Management’s Discussion and Analysis 6 Basic Financial Statements 6 Government-wide Financial Statements 7 Fund Financial Statements 8 Government, Proprietary, and Fiduciary Funds – Financial Statements 10 Summary of Significant Accounting Policies (SSAP) 14 Note Disclosure (other than SSAP and pension-related disclores) 19 Required Supplementary Information (RSI) 19 Combining and Individual Fund Information
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Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. Such a trade is motivated by the possibility of generating extraordinary gain with the help of nonpublic information (information not yet made public). It gives the trader an unfair advantage over other traders in the same security. insiders are defined as a company's officers, directors and any beneficial owners
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