When a Majority of the Directors of a Corporation Are

question 43

Multiple Choice

When a majority of the directors of a corporation are not independent and the shareholders bring a derivative action against the directors,the burden of proving that the Zapata test has been met lies on the:

• A)company secretary.
• B)secretary of state.
• C)corporation.
• D)shareholders.

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Definitions:

Gender-based Classification

the categorization or differentiation of individuals based on their gender, which can raise legal issues particularly when it leads to discrimination.

Rational Basis

A standard of judicial review that requires a law to have a reasonable connection to a legitimate government objective to be upheld as constitutional.

Checks and Balances

Checks and balances is a system in which the different branches of government have powers that can influence and limit the powers of the other branches to prevent any single branch from becoming too powerful.

Federal Judge

A judge appointed by the president of the United States and confirmed by the U.S. Senate, who adjudicates cases within the federal court system.