Smith, Director of ABC Ltd

question 143

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

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Definitions:

Mutual Attraction

A reciprocal feeling of attraction between two individuals, often a key factor in the development of romantic relationships.

Refinement

The process of improving something by making small changes, especially to make it more effective or to enhance its quality.

Neatness

The quality of being clean, tidy, and in order; often associated with personal or environmental organization.

Education

The method of obtaining or providing structured learning, particularly in an educational institution like a school or university.