The Revised Act Requires Dismissal of a Derivative Suit If

question 73

True/False

The Revised Act requires dismissal of a derivative suit if qualified (disinterested) directors determine, in good faith after conducting a reasonable inquiry that maintenance of the derivative suit is not in the best interests of the corporation.

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Definitions:

Minimum Dividends

The smallest amount of dividends a company decides to pay out to its shareholders, often based on agreements or policy.

Par Common Stock

The nominal or face value of a common stock as stated in the corporate charter, unrelated to its market value.

Property Tax

A local government levy on real estate that is determined by the value of the property.

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.