Sometimes Almost All the Directors of a Company Have Interests

question 6

Multiple Choice

Sometimes almost all the directors of a company have interests in a contract.They should

• A)present the contract to the management for a decision.
• B)vote as a total board of directors.
• C)present the contract to a general meeting of shareholders for their ratification after full disclosure has been made.
• D)gather the remaining independent directors and form a quorum.
• E)vote as a corporate committee of the whole.

---

Definitions:

Vicarious Liability

Holding one person or entity legally responsible for the actions of another, typically an employee or agent.

Principal-Agent Relationship

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in conducting transactions with third parties.

Strict Liability

A legal principle where a party is responsible for damages caused by their actions, regardless of negligence or intent.

Voting Agreement

A legal pact among shareholders to vote their shares in a certain manner.