It seeks advice as to its rights, if any, on the above set of facts. Last month, at a duly called directors' meeting, the RMP Inc. Board discussed purchasing a specific parcel of property which they considered essential for corporate expansion. The Board instructed R to investigate the acquisition of the property and, if possible, to negotiate and come to terms with its owner. Thereafter, R purchased the property on his own behalf. M has since changed his mind concerning the property, and now wants it for the corporation.
R is most anxious to sell it.
The purchase price that R is asking, is consistent with the fair market value of the property but considerably higher than the price which he had paid for it. Last week, at a duly called, regularly scheduled directors' meeting, which P did not attend since he was vacationing, the Board agreed to purchase the property from R at his asking price. P has returned from vacation and learned what R and M have done concerning the property. He has informed them that the property deal is not in the best interests of the corporation. R and M have responded to P by insisting that the acquisition proceed.