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Where a Director Who Is a Shareholder Is Accused of a Conflict

question 4

True/False

Where a director who is a shareholder is accused of a conflict of interest, that director may vote with his or her shares on a motion regarding that conflict at a shareholders' meeting.


Definitions:

Principal

The initial amount of money borrowed in a loan or the amount of money invested, not including interest or profits.

Demand Loan

A type of loan where the lender can demand repayment at any time.

Simple Interest Rate

A fixed percentage of the principal amount that is paid as interest for the use of borrowed funds, calculated on an annual basis without compounding.

Final Payment

The last installment paid on a loan, completing the payback of the total borrowed amount and any accrued interest.

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