Question: The Pyro Corporation has outstanding 20,000 shares of common stock. The shareholders consist of:
(i) Peter B. Arson who owns 19,000 shares;
(ii) Elizabeth Arson, Peter's wife, owns 500 shares; and,
(iii) Joseph Q. Arson, Peter's brother, who owns 500 shares.
These three individuals are the officers and directors of the corporation. The Pyro Corporation obtained a $750,000 fire insurance policy to cover a certain building it owned. Thereafter, Peter B. Arson set fire to the building and it was totally destroyed. Can the corporation recover from the fire insurance company on the $750,000 fire insurance policy?