Exam 37: Corporate Governance and the Sarbanes-Oxley Act

The ________ Act prohibits public companies from making personal loans to their directors or executive officers.

A system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open is known as cumulative voting.

A member of the board of directors who is also an officer of the corporation is known as a(n)________.

A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation itself fails to bring the lawsuit is known as a ________.

The shareholders are responsible for determining how much will be paid in dividends.

________ is a doctrine that says if a shareholder dominates a corporation and uses it for improper purposes, a court of equity can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations.

A director or corporate officer who usurps a corporate opportunity would be in violation of the director's fiduciary duty called ________.

Shareholders do not have to attend a shareholders' meeting to vote.

The ________ is a requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders.