Because a Director of a Closely Held Corporation Breached His

question 91

Multiple Choice

Because a director of a closely held corporation breached his duties to the corporation, the corporation lost $15,000. Despite the urging of the shareholders, the board of directors refused to begin an action on behalf of the corporation. Which one of the following provisions would aid the shareholders?

• A) Relief-from-oppression provisions
• B) Pre-emptive right provisions
• C) Indoor-management rule
• D) Derivative-action provisions
• E) Dissent procedure