Business Law Help please?

[fyfe]

Any insight on this?

Arnold is a director and the majority shareholder of Beta Investments Corporation. Arnold buys, for $1,500, an option to purchase a tract of real estate for $50,000. Arnold forms a new corporation, Commercial Property, Inc., to hold the option. As the majority shareholder, and thus controlling director, of Beta, Arnold orders Beta to authorize the purchase of the land from Commercial Property for $100,000. Arnold then has Commercial Property buy the land and sell it to Beta, and loan the money to Beta for the purchase at a 10 percent interest rate. Diana, a minority shareholder in Beta, complains to Beta’s board, which takes no action. Diana files a suit against Arnold on Beta’s behalf. Will Diana prevail?

[culley96]

If you do your homework, you will discover the answer.