Some Jurisdictions Permit the Shareholders to Amend the Articles of Incorporation

question 15

Multiple Choice

Some jurisdictions permit the shareholders to amend the articles of incorporation to relieve directors of any financial liability for violations of the duty of:

• A) care.
• B) loyalty.
• C) avoiding self dealing.
• D) voting.

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Definitions:

Contractual Obligations

Responsibilities, duties, or promises that are legally binding, as outlined in a contract between parties.

Limited Personal Liability

A legal principle whereby an individual's responsibility for business debts and obligations is restricted, typically in the context of limited liability companies or corporations.

Partnership Creditors

Individuals or entities to whom a partnership owes money or has financial obligations.

Ratify

The act of formally approving a contract or agreement, making it officially valid and enforceable.