Under Most State Statutes,a Corporation May

question 14

Multiple Choice

Under most state statutes,a corporation may

• A)include in its charter a provision indemnifying directors unless they have engaged in intentional misconduct or bad faith.
• B)include in its charter a provision indemnifying directors under any circumstances in the conduct of their duties for the corporation.
• C)not include in its charter a provision indemnifying directors who engage in negligent conduct of their duties.
• D)not include in its charter any provisions regarding indemnification of directors.

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Definitions:

Secured Perfected Creditor

Refers to a creditor who has taken the necessary legal steps to secure a right in the borrower’s collateral, ensuring priority over claims made by other creditors.

After-Acquired Property

Property acquired by a debtor after an agreement or court order, which may become subject to claim by creditors.

UCC

The Uniform Commercial Code governs commercial transactions in a way that facilitates the easy flow of commerce through consistent legal rules.

Movable Collateral

Assets that can be relocated and are used as security for a loan without transferring ownership to the lender.