Statement of Facts
Ms. Betty Baus has contacted our firm to address some concerns of hers that involve a
breach in fiduciary duties by the Board involving a lease in place with Mega Store Outlet
as well as a purchase by Mr. Downs in a Huge Manufacturing Plant. Its shareholders are
“demanding” that the deal between Snike Inc. and Mega Store Outlet be repealed so the
shareholders can be reimbursed for damages. This memorandum will cover research in
whether a Corporate Opportunity was taken advantage of by Mr. Downs, whether this
lease between Snike Inc. and Mega Store Outlet is void or not as well as has it been
retified, and a concern whether a breach was caused by the Board when the Mega Store
Outlet lease was signed. This memo will not include how and by what this company is
benefiting from but it will cover whether a breach occurred in either the Duty of Loyalty,
Duty of Care or the Corporate Opportunity Doctrine.
Snike Inc manufactures, designs and sells sports equipment as well clothes though their
own retail stores, outside sporting goods stores and the Snike Inc. website. This company’s
Board of Directors, including Denny Downs, are always trying to take opportunities for the
company to expand and benefit from. Recently, Mr. Downs wanted Snike Inc. to benefit
more from its own sales rather than the other sporting goods stores they are involved with.
Mr. Downs is involved in a company called Double Downs Development with his son
where the build, own, manage, lease and sell commercial property to others.
