Shareholders Cannot Seek an Injunction Against an Ultra Vires Act

question 89

True/False

Shareholders cannot seek an injunction against an ultra vires act by a corporation.

---

Definitions:

Agency Problems

Conflicts of interest that arise when agents (managers or executives) make decisions that benefit themselves rather than the principals (shareholders) they are supposed to represent.

Sole Proprietorships

A company that is both owned and managed by one person, where there is no legal separation between the proprietor and the business itself.

Secondary Market

The marketplace for the buying and selling of pre-owned securities or financial instruments.