Fact Pattern 41-4​ Diversified Corporation's Articles of Incorporation Prohibit a Sale of Its

question 49

Multiple Choice

Fact Pattern 41-4​
Diversified Corporation's articles of incorporation prohibit a sale of its assets without a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for.
-Refer to Fact Pattern 41-4. In these circumstances, the appropriate remedy is most likely​

• A) ​a sale of the rest of Diversified's assets to its directors and shareholders.
• B) ​Diversified's consolidation or merger with Enterprise.
• C) ​Diversified's dissolution.
• D) ​payment of damages to Diversified's officers.

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Definitions:

Uniform Probate Code

The Uniform Probate Code is a set of laws designed to simplify the process of transferring assets at death and to standardize probate proceedings across different jurisdictions.

State Law

The body of law enacted by individual states in the United States, as opposed to federal law which is enacted by the federal government.

Disposition

The act of disposing, selling, or transferring property or assets, often as part of a legal settlement or estate management.

Inter Vivos Trust

A trust created and implemented during the lifetime of the grantor to manage or protect assets.