Exam 25: Corporate Directors, officers, Shareholders

Lexy and Mort act as the incorporators for NuGame Corporation.After the first board of directors is chosen,subsequent directors are elected by a vote of NuGame's

The board of directors of Integral Components Corporation consists of Frida,Gayla,and Hart.A quorum is the minimum number of these directors

Officers are required to exercise a reasonable amount of supervision over the corporate directors.

Shareholder voting agreements are usually held to be invalid and unenforceable.

Thor Power Products Corporation permits its directors to be elected by cumulative voting.This

Naomi and Ogden are shareholders of MediCare Residences,Inc.As shareholders,they must approve

Chip is a director of Diners Restaurants,Inc.Chip would breach his duty of loyalty if he

Shares issued for more than their fair market value are known as watered stock.

Gladys is a shareholder of Frozen Yogurt,Inc.As a shareholder,Gladys must approve

Sophie and Tiny incorporate their beverage-container business as U-Twist Products,Inc.The first board of directors may be appointed by the firm's

To vote their shares,shareholders must attend a meeting and vote in person.

Shareholders own a corporation.

Fact Pattern 25-1 Ruben is a shareholder of Speed Bikes Company (SBC). When the direc¬tors fail to undertake an action to redress a wrong suffered by SBC, Ruben files a suit on the firm’s behalf. -Refer to Fact Pattern 25-1.Ruben's suit is a shareholder's

A board of directors cannot conduct business outside a formal meeting.

Heidi and Ian are directors and shareholders of Globe Software,Inc.Heidi's written authorization to Ian to vote Heidi's shares at a Globe shareholders' meeting is

Natalie is a shareholder of Off-Road Vehicle Company.As a shareholder,Natalie does not have

A stock warrant is a distribution of corporate profits or income.

Reynaldo is a director of Quantum Mechanix Corporation.Reynaldo's rights,as a director,do not include a right to

A director usually serves on a corporation's board for a life term.

Orin is a shareholder of Pinkwater Corporation.In some states,Orin might incur personal liability for unpaid Pinkwater debts if he