Wilcox, chief executive officer and chairman of the board of directors, owned 60 percent of the shares of sterling corporation. when the market price of sterling’s shares was $22 per share, wilcox sold all of his shares in sterling to conrad for $29 per share. the minority shareholders of sterling brought suit against wilcox demanding a pro rata share of the amount wilcox received in excess of the market price.
a. what are the arguments to support the minority shareholders’ claim for a pro rata share of the amount wilcox received in excess of the market price? b. what are the arguments to reject the minority shareholders’ claim for a pro rata share of the amount wilcox received in excess of the market price? c. which side should prevail?