Which of the Following May Be Used to Redress the Ultra

question 67

Multiple Choice

Which of the following may be used to redress the ultra vires acts committed by a corporation?

• A) A proceeding by the attorney general of the state of incorporation to enjoin it from the transaction of unauthorized business.
• B) Suit by the corporation or shareholders derivatively against present or former directors or officers for commission of the acts.
• C) Proceeding by shareholders for an injunction.
• D) All of these may be used.

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Definitions:

Bankruptcy

A legal process allowing individuals or businesses that cannot meet their financial obligations to eliminate or repay their debts under the protection of the law.

Discharged

This term refers to the process by which an obligation or debt is formally nullified or released, such as when a bankruptcy court discharges a debtor's obligations.

Chapter 12

A section of the U.S. Bankruptcy Code providing for debt relief to family farmers and fishermen.

Family Farmer

A designation used in bankruptcy law for a farmer or fisherman with regular annual income that allows them to adjust debts under Chapter 12.