Exam 27: Corporate Governance: External Responsibilities

To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

What condition(s)must be met before a corporation may purchase its own shares?

Provincial securities legislation delegates control over the public offering of shares to provincial securities commissions.The goals of the legislation include all of the following EXCEPT

Explain why legislation is necessary in areas of law other than contracts or torts to regulate the conduct of corporations and those who run them.

The characteristics of corporations presents special problems for criminal liability in part because

At present,and largely due to the Enron debacle and the events of the world-wide recession of 2008,there is a trend toward a greater consideration of ethics in corporate business.Will this continue?

There are a number of statutes that contain protections for the benefit of employees.Which of the following pieces of legislation does NOT contain any provisions with respect to protection of employees?

Secondary market liability occurs when someone who owns shares in a company sells them in circumstances where information released about the state of the company is false and not yet corrected.

Briefly describe the circumstances whereby a corporation can be held liable in tort.

Under criminal law,corporations are subject to be punished.Punishment can take place by

Mandy had her securities licence suspended by the securities commission,yet she continues to buy and sell stock as an investment dealer.Mandy certainly