Canadian Aero Services V. Cropper Case Study

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In the case of Canadian Aero Services (CanAero) v. O’Malley, senior officers of CanAero, O’Malley and Zarzycki, were sent to Guyana to examine a professional opportunity. Zarzycki prepared an offer, for the Guyanese officials to be used for obtaining funding from the Canadian government. Zarzycki, Canada’s government and the Guyanese government agreed on the terms of funding the project and then created the procedure for bidding on the project. Promptly after this, both O’Malley and Zarzycki resigned from their positions with Canadian Aero Services. O’Malley and Zarzycki then incorporated a new company, Tera, that was in the same industry as CanAero. Both Canadian Aero Services and Tera made bids for the project. O’Malley and Zarzycki’s new…show more content…
Cropper The second case is Peso Silver Mines v. Cropper. Cropper was the managing director of Peso, which held mineral claims in the Yukon Territory. A prospector, Dickson, made an offer for Peso to purchase land from Peso. The offer was considered by Peso’s full board of directors and was rejected, in part because of Peso’s strained financial situation. A short while after Peso’s board had rejected the offer, a geologist, Dr. A, approached Cropper with the possibility of forming a group to acquire the claims. Cropper and three others took up these claims and each contributed an equal amount to finance the purchase through a newly incorporated company, Cross Bow. At a later meeting of the board, Cropper disclosed his interest in Cross Bow, but refused to comply with the chairman's request that he turn over his interest in Cross Bow at cost. Cropper was fired as an officer and eventually resigned as a director. Peso sued Cropper for the shares of crossbow. Cropper was found not liable for breaking a fiduciary duty to Peso. This was based on two important facts. The first is that there is no confidential information was unavailable to any prospective purchaser or that Cropper as director had access to any such information because he was director and an officer of Peso. Therefore, Cropper did not use his position as director to gain inside

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