Exam 34: Corporate Directors, officers, and Shareholders

The board of directors is the ultimate authority in every corporation.

Mieko is a shareholder of Natural Gas,Inc. Natural Gas uses cumulative voting to elect directors. This means that the number of Mieko's votes is determined by the number of

A corporation's officers and other executive employees are hired by corporate shareholders.

Pat owns one share of stock in Quik Smoothies Corporation,as evidenced by a stock certificate. Because stock is intangible personal property,Pat's ownership of the stock

Ally is a shareholder of Bank of Trade Inc. As a shareholder,Ally does not have inspection rights.

Coast-to-Coast Distribution,Inc.,is a national trucking company. Like most corporations,Coast-to-Coast's employees include its

A new position on a board of directors can be created by an amendment to the articles of incorporation.

When shareholders want to change a company policy,they can put their idea up for a shareholder vote.

Kelly transfers shares of stock that she owns in Laundry Management Company to Max. A shareholders' meeting takes place before Max's ownership is entered in Laundry's stock book. A vote at the meeting can be cast by

A director can be elected by the other members of the board.

A director must always vote on a proposed transaction in which he or she has a personal interest.

Corporate officers can normally be removed by the board of directors without cause.

Rafi,a director of Super Service Station Corporation,does not attend a board meeting for three years. During that time,Todd,Super's president,makes improper loans that cost the company $1 million. Rafi is most likely

Denise,Ervin,and Flem occupy the positions of directors on the board of Gallery Home Furnishings Inc. As directors,they may NOT

Emma is a director of Fab Styles Corporation. Without informing Fab,Emma goes into business with GR8 Trends,Inc.,in competition with Fab. Emma is li-able for breach of

A majority shareholder does not owe a fiduciary duty to minority shareholders under any circumstances.

Roddy is elected as a director to the board of Salt n' No-Salt Snax,Inc. He will most likely serve for a term of

Lewis is a director of Mines & Refineries,Inc. Using information that is not available to the public,Lewis makes a profit trading in Mines & Refineries securities. Lewis is most likely liable for breach of

Clive,Doris,and Elgar are the first directors on the board of Face x Face Corporation,a social media host. Subsequent directors are elected by a majority vote of Face x Face's

Each director present at a board meeting has one vote.