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Question
Sam is a shareholder of Telecommunications Corporation (TC), which sells repair parts and service for analog communications equipment. Business has not been profitable for TC. For the past four years, the firm has lost money on its operations. There has been some profit through sales of company assets, but the board of directors has refused to declare a dividend. This last year, the firm's accountants failed to file federal income tax returns and the board refused to pay the tax. Sam takes a close look at the firm and protests to the board, in particular over the failure to declare a dividend, but the board ignores the complaint. Which of these events, if any, would form a ground for a court to order the dissolution of TC, on Sam's petition?Answer
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