Exam 40: Corporate Directors, Officers, and Shareholders

Robyn owns one share of stock in SportBoards Corporation, as evidenced by a stock certificate. She loses the certificate. Her ownership of the stock is

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of

A new position on a board of directors can be created by an amendment to the bylaws.

Fact Pattern 40-1 Don is a shareholder of Energy Renew, Inc. When the directors fail to undertake an action to redress a wrong suffered by the corporation, Don files a suit on the firm's behalf. -Refer to Fact Pattern 40-1. Any damages recovered by the suit will normally go to

A vacancy on the board of directors can be filled by the board itself.

As a corporation, Paper Products Company can pay dividends if

As a general rule, shareholders are responsible for the daily management of a corporation.

Rosa and Sean are shareholders of Tasty Tacos, Inc. Rosa's written authorization to Sean to vote Rosa's shares at a shareholders' meeting is

Riley is elected as a director to the board of Salty Snacks, Inc. He will most likely serve for a term of one

In some states, a shareholder who receives watered stock may be liable to creditors of the corporation for unpaid corporate debts.

Daryl, Elsa, and Ferris are the directors of Go Apps, Inc. Go also has four officers and fourteen shareholders. Dividends can be ordered by the firm's

In most states, an individual can be an officer or a director of a corporation, but not both at the same time.

Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be

Fact Pattern 40-1 Don is a shareholder of Energy Renew, Inc. When the directors fail to undertake an action to redress a wrong suffered by the corporation, Don files a suit on the firm's behalf. -Refer to Fact Pattern 40-1. Don's suit is a shareholder's

Ann is a corporate officer for Blooming Flora, Inc. As a corporate officer, Ann is

Mike is a shareholder of Natural Gas, Inc. Natural Gas uses cumulative voting to elect directors. This means that the number of Mike's votes is determined by the number of

A dividend is a right given by a company to buy stock at a stated price by a specified date.

Each director present at a board meeting has one vote.

Since stock is intangible personal property, the ownership right to stock exists independently of a stock certificate.

Directors must engage in self-dealing.