Exam 40: Corporate Directors, Officers, and Shareholders

Neil, a majority shareholder of Oil Changes Inc., effectively excludes Polly, a minority shareholder, from the benefits of stock ownership in the firm. Polly can

Corporate business matters are presented at a shareholders' meeting of Hollywood Lights Inc., and other corporations, in the form of

Every shareholder is entitled to examine specified corporate records, but only in person, not through an agent.

Pat owns one share of stock in Quik-Stop Stores, Inc., as evidenced by a stock certificate. Because stock is intangible personal property, Pat's ownership of the stock

Gina is a director on the board of Home Furnishings Inc. As a director, she may not

Many states permit a corporate board to have fewer than three directors.

​A director or officer must act in good faith.

The board of Management Consultants, Inc., can delegate some of its responsibilities to

Nina is a director of Outback Outfitters, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be informed and

Power Products Corporation permits its directors to be elected by cumulative voting. This

Charlie, Dora, and Ethel are the first directors on the board of Face Time Corporation, a social media host. Subsequent directors are elected by a majority vote of Face Time's

Roy, a director of Service & Sales Corporation, does not attend a board meeting for three years. During that time, Terry, the firm's president, makes improper loans that cost the company $10 million. Roy is most likely liable for breach of

Ron is a director of Start-Up Inc. He is also a chief corporate officer in the firm and receives compensation for both positions. He is

Adam is a shareholder of Bay Boats Inc. with preemptive rights. With these rights, he can

Dividends can be paid in the stock of corporations other than the corporation that is paying the dividends.

Eve is a director of Fab Style Corporation. Without informing Fab, Eve goes into business with Gro Trend, Inc., in competition with Fab. Eve is most likely liable for breach of

The initial board of directors of a corporation is normally elected at the first annual shareholders' meeting by a majority vote of the shareholders.

Publicly held corporations typically create committees of directors and delegate certain tasks to these committees.

Not all directors have a right to access a corporation's books and records, facilities, and premises.

Nelson is Organic Coffee Company's majority shareholder. Nelson decides to sell his Organic Coffee stock. The sale will be an effective transfer of the control of the company. Does Nelson owe a duty to Organic Coffee or its minority shareholders in this situation?