you work for lavalier corporation during the past several years you have been workin 536597

You work for Lavalier Corporation. During the past several years, you have been working with the company to develop new communication technologies. Based primarily on your efforts, the company has acquired several valuable patents. The company has decided that the most attractive way of commercializing these patents is to set up a new company and provide you with a substantial equity stake in the business. Lavalier company lawyers have created a U.S. ‘‘C” corporation (the standard U.S. corporate structure) named Lavalier Communications, Inc. (LCI). Late in 20X0, the new company created a board of directors from senior officers in Lavalier Corporation and several independent (outside) directors. On January 2, 20X1, the board of directors met and named you president and chief operating officer (COO) of the new company. The board also named the corporate treasurer of Lavalier Corporation as the chairman and chief executive officer (CEO). The board of directors authorized 5 million shares of common stock ($1 par value). On January 2, 20X1, Lavalier transferred $5 million to a newly established bank account at First National Bank in return for 1 million shares of common stock (par value $1 per share).