A Corporation May Sue a Director Owning More Than Ten

question 31

Multiple Choice

A corporation may sue a director owning more than ten (10) percent of any class of corporate stock who makes a profit by selling any such stock:

• A) if the sale is made more than six (6)months after the original purchase of the stock by the director.
• B) only if the stock was originally acquired with fraudulent intent.
• C) only if the stock was sold with fraudulent intent.
• D) if the sale was made less than six (6)months after the original purchase of the stock by the director.

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Definitions:

Legitimate Interest

A recognized reasonable ground that an organization may have for processing personal data without needing consent under certain data protection laws.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Restriction

A limitation or constraint placed on actions, activities, or movements, often found in legal contexts or agreements.

Employment Agreement

A contractual agreement between an employer and employee outlining the terms of employment.