Which of the Following Situations Would Allow a Shareholder of a Closely

question 81

Multiple Choice

Which of the following situations would allow a shareholder of a closely held corporation, with permission of the court, 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 director, voted to end the employment contract of the fifth director, and voted not to buy his shares.
• B) If the corporation had been wronged by the negligent and fraudulent acts of one of its directors, but the corporation refused to take any action against the wrongdoer.
• C) If the shareholders refused to enter into a shareholder's agreement.
• D) If the directors refused to declare a dividend.
• E) If the directors solicited proxies from all of the shareholders.

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Definitions:

Pupil

The opening in the center of the iris of the eye that regulates the amount of light that enters the eye, adjusting in size based on light conditions.

Dilated

Refers to the expansion or widening of a structure or opening.

Constricted

Limited or narrowed in scope or freedom; often refers to a feeling of tightness or restriction in emotional expression or physical space.

Dim Light

Low-intensity illumination that provides a subdued visual environment.