Exam 34: Corporate Directors, Officers, and Shareholders

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions related to corporate affairs rests with Metro's

The number of directors that serve on a corporate board is determined by its

A director's right to access the corporation's books can be restricted by the corporate articles.

The executive committee of a publicly held corporation handles

Because of officers' positions within the corporation, they can be held liable for negligence if their failure to exercise due care results in harm to the firm.

Liability for negligence in the performance of corporate duties may extend to

If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.

Deb is a director and Erv is an officer of Fast Food Inc. Liability for the firm's intentional disregard of consumer-protection statutes may extend to

The board of directors conducts business by holding formal meetings with recorded minutes.

Directors, but not officers, are fiduciaries of the corporation.

Because of their positions within the corporation, directors can use confidential corporate information for personal advantage.

To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.