Smith, Director of ABC Ltd

question 40

Multiple Choice

Smith, director of ABC Ltd., intercepted a corporate opportunity for his own benefit and thereby caused the corporation to miss a $45 000 profit.A shareholder urged the board of directors to take action against him.The other directors, all close friends of Smith from school days, did not take any action against him, although they did voice their dissatisfaction with his move.Which of the following provisions would aid the shareholder?

• A)Dissent procedure
• B)Representative action (derivative-action) provision
• C)Indoor-management rule
• D)Pre-emptive right provision
• E)Relief-from-oppression provision

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Definitions:

Statement Of Financial Position

A financial document detailing an entity's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

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