In the Context of Corporate Powers and Management, What Is

question 23

Multiple Choice

In the context of corporate powers and management, what is indemnification?

• A) It is a situation where one person sits on the board of directors of two different companies.
• B) It is a situation where directors of two different companies serve jointly on the board of a third company.
• C) It is a lawsuit brought on behalf of the corporation by a shareholder when the directors refuse to act.
• D) It is a method whereby a shareholder elects a representative, commonly another individual or a written document, through which the shareholder casts his vote at the annual meeting.
• E) It is a method of protecting directors and officers whereby the corporation agrees to pay legal expenses incurred by the directors or officers.

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Definitions:

Tender Offer

involves a company or individual making a public offer to purchase some or all of shareholders' shares in a corporation at a specified price for a certain period.

Shareholders

Individuals, companies, or institutions that own one or more shares of stock in a public or private corporation, thus holding partial ownership.

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.

Consolidation

The process of combining multiple accounts or businesses into a single entity, often for the purpose of financial reporting or to streamline operations.