Exam 39: Corporationsdirectors, Officers, Shareholders

Brad is a shareholder of Concert Promotion Corporation. As a shareholder, Brad can

Directors are required to use a reasonable amount of supervision over the corporate officers.

Directors are responsible for all major corporate policy decisions.

Unlike a director, an officer is not expected to be informed on corporate matters.

Thor Power Products Corporation permits the election of its directors by cumulative voting. This

A dividend may be paid from undistributed net corporate profits.

Clifton is a director of Dri-Cleaning Corporation. With respect to Dri-Cleaning, Clifton's most important right is the right of

Mitch is a director and officer of Numero Uno, Inc. Mitch makes a market?ing decision that results in a dramatic decrease in profits for Numero Uno and its shareholders. The shareholders accuse Mitch of breaching his fiduci?ary duty to the corporation. What is Mitch's best defense against this ac?cu?sation? Later, a resolution comes before the Numero Uno board to compete with One-of-a-Kind Corporation. Mitch is a director and shareholder of One-of-a-Kind. What is Mitch's responsibility in this situation?

Egan is a director of First Realty Corporation. As a director, Egan can act as an agent to bind First Realty

Shareholders do not have legal title to corporate property but an equitable interest in the firm.

Denise, Ervin, and Flem occupy the positions of directors on the board of Gallery Corporation. As directors, they may not

Eve is a director of Fab Stuff Corporation. Without informing Fab, Eve goes into business with GR8 Things, Inc., in competition with Fab. Eve is li?able for breach of

Luke is a director of Motor Parts Corporation. Luke makes decisions with respect to Motor Parts in good faith, in what Luke believes is the firm's best interest, and without violating any duties owed to it. If, despite these circumstances, Luke exercises poor business judgment, under the business judgment rule Luke is

Rosa and Sean are directors of Tech, Inc. The right of Rosa and Sam to be notified of special meetings of the board is the right to

Frida, Gayla, and Hart occupy the positions of director on the board of Integral Components Corporation. With respect to these directors, a quorum is the minimum number

A board of directors generally conducts business without holding formal meetings.

Natalie is a shareholder of Off-Road Vehicle Company. As a share?holder, Natalie does not have

The article of corporation cannot exclude or limit shareholders' voting rights.

Lovey is a shareholder of Matchless Corporation with preemptive rights. With these rights, Lovey can

Niche Stores, Inc., must hold a shareholders' meeting