Authorizing capital stock


Case Problem:

Hyperion Company has an authorized capital stock of one thousand shares with a par value of $100 per share, of which nine hundred shares, all fully paid, were outstanding. Having an ample surplus, Hyperion Company purchased from its shareholders one hundred shares at par. Subsequently, Hyperion, needing additional working capital, issued the two hundred shares in question to Alexander at $80 per share. Two years later, Hyperion Company was forced into bankruptcy. How much, if any, may the trustee in bankruptcy recover from Alexander?

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Business Law and Ethics: Authorizing capital stock
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