The Board of Directors of Meckes Corporation, at a Regular

question 28

Multiple Choice

The board of directors of Meckes Corporation, at a regular meeting of the board, entered into a contract with Peter, one of the directors. The agreement called for the sale of a retail store the corporation operated to Peter. There were 12 board members, 10 of whom were present at the meeting. Nine directors, including Peter, voted in favor of the contract and one voted against it. In view of these facts, which of the following is correct?

• A) A director cannot enter into a contract with a corporation of which he is a director.
• B) The contract between Peter and the corporation is illegal.
• C) If the contract is unfair to the corporation, it is voidable at the option of the corporation.
• D) The contract is valid because Peter's vote was not necessary for approval of the contract.

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Definitions:

Erik Erikson

A developmental psychologist known for his theory on the psychological development of humans, outlining eight stages from infancy to adulthood focusing on psychosocial challenges.

Conflicts Throughout Lifespans

The various internal and external struggles individuals face at different stages of life, from childhood through adulthood into old age, impacting development and well-being.

Alfred Adler

An Austrian psychiatrist and psychotherapist famous for founding the school of individual psychology, emphasizing the importance of feelings of inferiority and the creative self.

Inferiority

A feeling of lesser or lower in status, quality, or worth compared to others, which can impact an individual's self-esteem and social interactions.