Exam 40: B: Corporate Directors,officers, Shareholders

Directors are entitled to use corporate funds for their personal advantage.

Directors have a right to participate in all board of directors' meetings.

Melba and Leon are directors of Fresh Foods,Inc.The right of Melba and Leon to be notified of special meetings of the board is the right to

Shareholders are the ultimate authority in every corporation.

Tank is a director and the majority shareholder of Unique New Investment Corporation (UNIC).Tank buys,for $1,500,an option to pur?chase a tract of real estate for $50,000.Tank forms Vista Property,Inc. ,to hold the option.As the majority shareholder,and thus controlling di?rector,of UNIC,Tank orders the firm to authorize the pur?chase of the land from Vista Property for $500,000.Tank then has Vista Property buy the land,sell it to UNIC,and loan the money to UNIC for the purchase at a 10 percent interest rate.Wim,a minority shareholder in UNIC,com?plains to UNIC's board,which takes no action.Wim files a suit against Tank on UNIC's behalf.Will Wim prevail? Explain.

Dimitri is a director and shareholder of Equitable Corporation and of Four Square Products,Inc.A resolution comes before the Equitable board to compete with Four Square.What is Dimitri's responsibility?

Dividends are distributed on the basis of possession of a stock certificate.

Bev is a shareholder of All-Terrain Vehicle Company.As a share?holder,Bev does not have

Fact Pattern 40-1A 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 40-1A.Any damages recovered by Ruben's suit will normally go to

VeriVisual Company makes HD 3D film and video equipment.VeriVisual is like most cor?porations in that its officers are hired by the firm's

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

Frawsty Corporation distributes beverages in the greater Northwest.Frawsty's board of directors can delegate some of its functions to

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

Fact Pattern 40-1A 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 40-1A.Ruben's suit is a shareholder's

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

When a third party harms a corporation,only the shareholders can bring a suit in the corporation's name against that party.

Fiona owns one share of stock in GR8 Boards Corporation,as evidenced by a stock certificate.Fiona loses the certificate.Her ownership of the stock is

An inside director is a director who does not hold a management position in the corporation.

Shareholders' meetings need not occur at any certain interval.

Clark is a shareholder of Bedrest Mattress Company.Clark will be deemed to have a fiduci?ary duty to Bedrest and its minority share?hold?ers if he has