What Is the Most Important Factor That Contributes to a Minority

question 39

Multiple Choice

What is the most important factor that contributes to a minority shareholder's ability to commence a derivative action?

• A) The action must arise from discrimination against minority shareholders.
• B) The action must be a pursuit of proper and adequate disclosure of material information.
• C) The action must arise as a direct result of a fundamental change to the corporation.
• D) The action must be in the corporation's cause as a result of some injury to it.

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Definitions:

Statement of Purpose

A written document that outlines an individual's intentions and objectives, often used in academic or professional applications.

Internal Reports

Documents created within an organization to communicate information, updates, or findings among its members.

External Reports

Documents that communicate a company's or organization's status or performance to outside entities, such as regulatory bodies, investors, or the public.

Valid Data

Accurate and reliable information that is relevant and appropriate for the context in which it is used.