Which of the Following Must Exist Before a Shareholder Can

question 37

Multiple Choice

Which of the following must exist before a shareholder can bring a derivative action?

• A) The shareholder must also be an officer or director.
• B) The shareholder must have owned shares at the time of the wrong against the corporation.
• C) A majority of the common shareholders must support the action.
• D) The shareholder should not be an employee of the firm.

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Definitions:

Substance Abuse

Repeated, harmful use of a substance, usually alcohol or other drugs.

Typical Adolescent Behavior

Refers to the common actions and demeanor expected from teenagers due to hormonal changes, including mood swings, seeking independence, and experimenting with identity.

Addiction

A chronic disorder characterized by compulsive engagement in rewarding stimuli, despite adverse consequences, leading to significant impairment or distress.

Illicit Use

The unauthorized or illegal consumption or use of substances or goods.