Case Study- Shareholder Rights
Greg Dawson, a former Vice President of Finance for Coca-Cola, owned 100,000 shares of Coca-Cola (KO) stock. Dawson's stock ownership consisted of approximately 7.5% of the company's total stocks. After a merger between Pepsi and Quaker Oats, Dawson left Coca-Cola and started working as the Vice President of Finance for Quaker Oats. When Coca-Cola offered to purchase Dawson's stocks, he requested access to Coca-Cola's corporate books to determine the value of the stock. Coca-Cola refused the request on the basis that Dawson worked for a competitor.
What are the rights of each party? How would you resolve the case? Support your answer with appropriate laws, cases and/or examples.