In Ironite Products V

question 81

Multiple Choice

In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that:

• A) the directors committed fraud and would be removed from the board and a new board would be elected under court supervision
• B) while there was no fraud, the directors did not follow the bylaws properly, so the changes made to the corporation would have to be reconsidered
• C) the bylaws had been violated, so Samuels was due full fair market value of his shares
• D) the directors violated their duty to the corporation so would be removed from control and Samuels would take control of the company
• E) none of the other choices