Question

Please use IRAC format.

7. Pro Brands, Inc., a South Carolina corporation, hires Treena Javitz as vice president of marketing. Pro Brands and Javitz sign a written contract by which Pro Brands agrees to pay Javitz an annual salary of $450,000 and a performance bonus that could reach $400,000 a year, as well as issue to her 30,000 shares of Pro Brands common shares. The market price of the common shares is $22 per share. The board of directors agrees to issue the shares to Javitz in return for her signing the five-year contract and a separate promissory note for $330,000. The note is due immediately if Javitz terminates the contract any time before the end of five years. The amount that will be due to Pro Brands on the note will reduce by $5,500 for each month that Javitz works as VP of marketing for Pro Brands. If she works for Pro Brands for all five years, Javitz will owe nothing on the note. Has the board of directors issued the shares for proper consideration?

Answer 1

Answers ♡ Has the board of directors issued the shares for proper consideration ? + PB inc. which is a south Carolina Corporation has entered into a conhect with T Javitz by appointing heras up de marketing for the period of five years in return offers her hand some salary, bonus, performance appraisal dues, and issue of 30,000 shares of the company as per which if t resigns from the post of vp marketing, the company also olbers a promissory note. and breaks this five years contract she will be used for $3,000 but if she works to fall 5 years she will own nothing on the note. - > As per the quality and quality d consideration of shars, the board of directors has not issued the shares of proper consideration, and as per the law to protect creditors

and shareholders interest, there has to be requirements @ of real value that is to be offered to them by the company. - In this case, as per the promissory note, Tif scores 5 years in the company will not anything in titan. and thus it could be said that the shares have not been issued considerably