Which of the Following Statements Is False About Involuntary Dissolution

question 51

Multiple Choice

Which of the following statements is false about involuntary dissolution in the case of gridlock among the directors?

• A)Courts can enforce involuntary dissolution if gridlock over an issue persists
• B)Before ordering dissolution,courts usually urge shareholders to attempt to resolve their differences.
• C)Courts will force shareholders to resolve the differences among the directors.
• D)Courts will consider the extent to which deadlock will result in irreversible damage to the corporation.
• E)If the disagreement will likely cause significant damage to the corporation,courts will order the corporation to be dissolved.

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Definitions:

Securities Act Of 1933

A U.S. federal law enacted to ensure transparency in financial statements so investors can make informed decisions about investments, and to establish laws against fraud in the securities industry.

Interstate Commerce

Trade, traffic, or transportation involving the crossing of state boundaries within the United States.

Registration

The act of recording or enrolling an individual's or entity's details on an official list or registry for legal, security, or operational purposes.

Best Efforts

A clause requiring a party to make the maximum effort to achieve a task, without guaranteeing success.