Exam 39: Corporationsdirectors, Officers, Shareholders

A shareholder that owns sufficient shares to exercise de facto control over a corpora?tion owes a fiduciary duty to the minority shareholders.

Bea is a shareholder of Candy Corporation. The right to inspect corporate books and records is

A share issued for more than its fair market value is watered stock.

A voting trust is an illegal restraint of shareholders' power.

Lon and Merry act as the incorporators for NuGame Corporation. After the first board of directors is chosen, subsequent directors are elected by a majority vote of NuGame's

A person must be a shareholder of a corporation to serve as a director.

Coast-to-Coast Distribution, Inc., is a direct-mail distribution company. Like most corporations, Coast-to-Coast's employees include its

Corporate officers govern every corporation.

Preemptive rights entitle shareholders to bring a derivative suit against the corpora?tion.

In all states, Sports Club Company and other corporations can pay dividends from

Sophie and Tiny incorporate their beverage-container business as U-Twist Products, Inc. The first board of directors may be appointed by the firm's

Cody and Dex form Eminent Corporation. Eminent has a board of directors, a chief executive officer, a chief operating officer, and fifty-two sharehold?ers. Eminent is governed by its

Unlike the directors of other corporations, the directors of a close corporation can take any action without breaching their fiduciary duties.

Shareholders own a corporation and the right to manage it.

Shareholders may not vote to remove members of the board of directors.

When a third party harms a corporation, the directors can bring a suit in the corporation's name against that party.

Orin is a shareholder of Pinkwater Corporation. In some states, Orin might in?cur personal liability for Pinkwater obligations if he

Dimitri is a director and shareholder of Equitable Corporation and of Four Square Products, Inc. A resolution comes before the Equitable board to compete with Four Square. What is Dimitir's responsibility?

Cole is a shareholder of Delta, Inc. Cole will be deemed to have a fiduci?ary duty to Delta and its minority share?holders if he has

A director is a fiduciary of a corporation.