Running head: PETITION FOR DISSOLUTION
A Hole in His Parachute
Mike Sullivan
Grantham University
Abstract
Knight—the owner of all capital stock of Knight-Ridder Corporation, a newspaper business—sold all his shares to Murdoch and promised to serve as adviser to the newspaper for a period of five (5) years in return for an annual salary of $2.5 million. After three years, Murdoch petitioned for dissolution. If the corporation was dissolved what right does Knight have to collect the balance of the salary from the corporation?
A Hole in His Parachute
I have always thought of a corporation as a business and in a since it is. While reading chapter 29 of the text I found a corporation described in the best way that I have ever read.
“Although a corporation is considered a person under most statutes, there are a few situations, such as those allowing the appointment of “suitable persons” as parole officers, in which it is not a “person.” A corporation is a person for purpose of the due process clause of the fifth and fourteenth amendments to the United States Constitution. For purposes of the privilege against compulsory self-incrimination, it is not a person” (Morgan, Shedd, & Corley, 2010).
It never ceases to amaze me at the ways at which we can find to not hold ourselves accountable. This short paper will discuss the dissolving of a corporation and whether or not Mr. Knight is due to collect the balance of the salary from the corporation.
With just the information given we know that Mr. Knight sold all of his shares of the company. If you know anything about this you will know that after selling all of your shares you have no control over that company or any decisions made on its behalf, unless stated otherwise. We also know that he promised to stay on for another five years after selling his shares as an advisor in return for a 2.5 million dollar annual salary. What we don’t know is if there was a contract in place...