Which of the Following Situations Would Allow a Shareholder to Sue

question 116

Multiple Choice

Which of the following situations would allow a shareholder to sue on behalf of the corporation?

• A) If four of the five directors, in the best interests of the corporation, voted against the fifth as director, voted to end the employment contract of the fifth, and voted not to buy his shares.
• B) If the corporation had been wronged (lost $30,000) by the negligent and fraudulent acts of one of its directors, but the corporation refused to make any action against the wrongdoer.
• C) If the shareholders refused to enter into a shareholder's agreement.
• D) If the directors took an action that unfairly prejudiced a shareholder.
• E) If the directors issued shares without offering any of the new issue to the present shareholders.

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Definitions:

Long-term Memory

The aspect of memory responsible for storing information over extended periods, from days to decades, allowing recall of experiences, knowledge, and skills.

Processing of Information

The operations and activities involved in the perception, manipulation, and storage of information by the human brain or computer systems.

Desired Future Selves

Refers to the aspirational visions individuals have for who they want to become in the future, including their goals, ambitions, and desired attributes.

Self-esteem

One's overall evaluation or appraisal of one's own worth.