College of The Canyons Mining Business vs Shareholders Law Case Study

I’m working on a law case study and need a sample draft to help me understand better.

Billy was the CEO of XYZ corporation, a public company, which was in the mining business. Without telling his Board of Directors, or any one else for that matter, Billy decided to accept a position as a Board member of a start-up mining company, ABC. Billy did so because he wanted to make some extra money on the side and also got a lot of stock incentives that could materialize into significant money if ABC ever “went public”. In the meantime, to help increase the sales of XYZ, Billy hired his best friend from college, Jonny, as the new head of sales. Jonny had a serious substance abuse problem and never held a sales position before, though he was a very talented musician and gourmet chef when he stayed sober. Billy did not consult the Board of Directors prior to hiring Jonny and offered him a generous compensation package that was not reviewed by the Compensation Committee. Based on Jonny’s poor performance he was terminated by Billy after only 6 months of employment with XYZ. As part of his severance from XYZ, Jonny was paid a severance package worth almost $500,000 even thought his annual salary (with bonus) was $130,000.

Question:

Identify, discuss and analyze (USING IRAC) all the claims shareholders of XYZ may have against Billy. FOCUS YOUR ANSWER TO CORPORATE LAW ISSUES, DO NOT DISCUSS ANY SECURITIES OR EMPLOYMENT ISSUES.