Exam 40: Corporate Directors,officers, Shareholders

Fact Pattern 40-1A (Questions A18-A19 apply) Ruben is a shareholder of Speed Bikes Company (SBC).When the direc?tors fail to undertake an action to redress a wrong suffered by SBC,Ruben files a suit on the firm's behalf. -Refer to Fact Pattern 40-1A.Any damages recovered by Ruben's suit will normally go to

Officers hire the directors and other executive employees.

Directors are entitled to use corporate funds for their personal advantage.

Clark is a shareholder of Bedrest Mattress Company.Clark will be deemed to have a fiduci?ary duty to Bedrest and its minority share?hold?ers if he has

Gladys is a shareholder of Frozen Yogurt,Inc.As a shareholder,Gladys must approve

VeriVisual Company makes HD 3D film and video equipment.VeriVisual is like most cor?porations in that its officers are hired by the firm's

Rhea is a director of Spex Corporation,which makes and sells sunglasses and other eyewear.As a Spex director,Rhea sits on the board,which

Directors are not obligated to refrain from self-dealing.

Many qualifications are required for directors.

Fact Pattern 40-1A (Questions A18-A19 apply) Ruben is a shareholder of Speed Bikes Company (SBC).When the direc?tors fail to undertake an action to redress a wrong suffered by SBC,Ruben files a suit on the firm's behalf. -Refer to Fact Pattern 40-1A.Ruben's suit is a shareholder's

Shareholders are personally liable for the debts of a corporation.

In all states,Exercise & Fitness Club Company and other corporations can pay dividends from

A director or officer is required to exercise the care that an ordinarily prudent person would exercise in similar circumstances.

Reba is a director of Quantum Mechanix Corporation.Reba's rights,as a di?rector,do not include a right to

Shareholders' meetings need not occur at any certain interval.

Dividends are distributed on the basis of possession of a stock certificate.

Shareholders are the ultimate authority in every corporation.

Bret and Courtney form Delite Day Care,Inc.Ultimate respon?sibility for pol?icy decisions necessary to the management of corporate affairs rests with Delite's

Melba and Leon are directors of Fresh Foods,Inc.The right of Melba and Leon to be notified of special meetings of the board is the right to

An amendment to the articles of incorporation can create a new position on the board of directors.