Exam 37: Corporate Governance and the Sarbanes-Oxley Act

The election of directors of the corporation can be held by electronic transmission.

The Inkilwas Corporation has 30, 000 shares outstanding. A shareholders' meeting is duly called to amend the articles of incorporation, and 17, 501 shares are represented at the meeting. -If an Inkilwas Corporation amendment for its articles of incorporation is put to vote at this meeting, which of the following statements would be true with respect to the passing of the amendment?

Which of the following is true of a shareholder voting agreement?

Which of the following is considered an absolute power of corporate directors?

In which of the following cases can the alter ego doctrine be invoked in a corporate civil case?

Once declared, a cash or property dividend cannot be revoked.

Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are known as ________.

Samson owns 1, 500 shares out of the 10, 000 outstanding shares of Comakote Corporation.If Comakote Corporation declares a stock dividend of 30 percent, what will be the total stock Samson has upon receiving his stock dividend?

________ are rights that give existing shareholders the option of subscribing to new shares being issued in proportion to their current ownership interests.

Marshall is the purchasing agent for the DigitoolArt Corporation.His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation.Assume that Bronson, a computer salesperson, pays Marshall a $20, 000 kickback to purchase from him computers needed by the DigitoolArt Corporation.What breach of the duty of loyalty has Marshall committed here?

Which of the following are considered as owners of a corporation?

The Sarbanes-Oxley Act contains provisions for prosecuting U.S.firms that bribe foreign officials.

The annual shareholders meeting is held to elect new shareholders.

Shareholder voting agreements have to be filed with the corporation.

Explain the term of office for board of directors.

A director who personally competes with the corporation he is employed in would be in breach of duty of obedience.

Persons who are shareholders on the record date are entitled to receive the dividend, even if they sell their shares before the payment date.

Jameson works for Fishy-Mart Corporation, a chain of superstores that sell large quantities of seafood.Jameson's job is to locate future sites for Fishy-Mart stores.Jameson finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart store.Jameson tells his friend to purchase the property from its current owner, which he does.Jameson has a secret agreement with his friend to split the profits when he sells the property to Fishy-Mart.Jameson, without disclosing his interest in the property, recommends the site to Fishy-Mart, which then purchases the property from Jameson's friend.The friend splits the profits with Jameson.What breach of the duty of loyalty has Jameson committed here?

Derrick has 2, 000 shares of the Unistone Corporation which is planning to vote for two new directors.Through a special voting provision in the corporation's articles of incorporation, Derrick was able to vote for both his preferred candidates with 2, 000 shares, giving him a virtual voting count of 4, 000 shares.What voting rule in the articles of incorporation allows Derrick to achieve this?

Which of the following is true for the board of directors of a corporation?