Max Sound Corporation (MAXD)

[grantastic]

Yes, it's "wrong" for Halpern to forge a contract... but when that forged contract is so great for MAXD shareholders, and so terrible for Halpern... why should shareholders want to stop it?

If shareholders force Halpern to retain ownership of his MAXD debts & preferred shares, then MAXD's debt to Halpern will grow by $100,000s every year, without end.

Presumably shareholders hold out hope that MAXD will one day generate a profit. It's be silly to insist on pledging a huge amount of that profit, in perpetuity to Halpern, when Halpern is offering an escape hatch to extinguish that debt immediately.