The Board of a Corporation Should Act in the Interest

question 1

Multiple Choice

The board of a corporation should act in the interest of:
I.majority shareholders
II.minority shareholders
III.foreign shareholders

• A)(I) correct only.
• B)(II) correct only.
• C)(III) correct only.
• D)(I) and (II) correct only.
• E)(I),(II) and (III) correct.

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Definitions:

Understand Obligations

Recognizing and comprehending the duties and responsibilities that are part of an agreement or contract.

Capacity

The legal ability or competency of a person or entity to enter into binding contracts or perform certain acts.

Illegal Clause

A provision in a contract that is prohibited by law and therefore unenforceable.

Sever

To cut off or divide property interests or legal relationships.