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If the Corporate Bylaws Require a Minimum of Five Directors

Question 12

Multiple Choice

If the corporate bylaws require a minimum of five directors to be present at each directors meeting, what happens if only two directors attend and they make a decision?


A) The decision is invalid because a quorum was lacking.
B) The decision is invalid because the directors did not have authority to vote
C) The decision is invalid unless shareholders vote to ratify
D) The decision is invalid because of a violation of the business judgment rule
E) The decision is valid

Correct Answer:

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