Bill McCann was the president and chief executive officer of McCann Ranch & Livestock Co. He and his brother Ron each owned 36.7 percent of the stock, but Ron had been removed from the board of directors on their father’s death and was not authorized to work for the firm. Their mother, Gertrude, owned the rest of the stock, which was to pass to Bill on her death. The paid Gertrude’s personal expenses in an amount that represented about 75 percent of the net corporate income. Bill received regular salary increases. The did not issue a dividend. Was Ron the victim of a freeze-out? Discuss. [McCann v. McCann, __ P.3d __ (Idaho 2012)]
