If a Director Commits a Breach of Fiduciary Duty, the Shareholders

question 47

True/False

If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.

---

Definitions:

Registration Statement

A set of documents filed with a regulatory body, like the SEC, by a company intending to issue public stock or securities, providing essential financial and business information.

Unaccredited Investor

An individual or entity that does not meet the criteria set by regulatory authorities to be considered an accredited investor, often limiting their investment opportunities.

Tipper

An individual who provides valuable, often confidential, information to someone, especially in financial contexts.

Asset Purchase

The buying of a company's assets instead of its stock, typically used in acquiring specific aspects of a business.