Practice question
A director says Strong imposes a blanket rule that every director is forbidden to buy any share from any shareholder at any price. Which is correct?
- That is the precise holding
- Only a director's relative may buy
- Every director purchase is automatically criminal
- No shareholder may ever sell
- The doctrine instead addresses disclosure and deceit in special circumstances
Legal references
- Strong v Repide,213US419,May3 1909,main opinion: https://www.govinfo.gov/content/pkg/USREPORTS-213/pdf/USREPORTS-213-419.pdf ; full opinion transcription: https://supreme.justia.com/cases/federal/us/213/419/
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