Sometimes Almost All the Directors of a Company Have Interests

question 17

Multiple Choice

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

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

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Definitions:

Compensatory Damages

Financial compensation awarded to a plaintiff to cover losses directly resulting from the defendant's wrongful action, intended to restore the injured party to their original position.

Erroneous Denial

A decision to reject or refuse something, such as a claim or request, that is based on incorrect or faulty reasoning.

Settlement

An agreement reached by parties in a lawsuit before the case goes to trial or a final judgment is issued.

Litigation

The process of taking legal action or engaging in a lawsuit to resolve disputes between parties.