Which of the Following Situations Would Allow a Shareholder of a Closely-Held

question 128

Multiple Choice

Which of the following situations would allow a shareholder of a closely-held corporation, with permission of the court, to sue on behalf of the corporation?

• A) If four of the five directors, in the best interests of the corporation, voted against the fifth director, voted to end the employment contract of the fifth director, and voted not to buy his shares.
• B) If the directors refused to declare a dividend.
• C) If the corporation had been wronged by the negligent and fraudulent acts of one of its directors, but the corporation refused to take any action against the wrongdoer.
• D) If the directors solicited proxies from all of the shareholders.
• E) If the shareholders refused to enter into a shareholder's agreement.

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Definitions:

Primary Hormone

A crucial hormone that plays a leading role in regulating vital body processes.

Stress Response

The body's reaction to any change that requires an adjustment or response, involving physical, mental, and emotional responses.

Ego-Defense Mechanism

Psychological strategies employed by the ego to manage stress, anxiety, and conflict by distorting reality in various ways.

Frustrated

The feeling of being upset or annoyed due to the inability to change or achieve something.