The Board of Directors of Lorantan Corporation Has 12 Members

question 47

Essay

The board of directors of Lorantan Corporation has 12 members.Lorantan's bylaws provide that a majority of seven or more directors is necessary to form a quorum.At a meeting of the board of directors,a resolution is adopted authorizing the sale of a substantial portion of the corporate assets to Pam Park,a director.Pam is one of the eight directors present.What must the directors do for Pam to avoid liability for buying the assets from the corporation?

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Definitions:

Identification

The psychological process in which an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.

Automatically Processed

Information processed without conscious awareness, often quickly and efficiently.

Retracing Steps

A method of attempting to remember or find something by thinking or going back over the path or actions taken.

Identification

A psychological process whereby an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.