Multiple Choice
Fact Pattern 41-4
Diversified Corporation's articles of incorporation prohibit a sale of its assets without a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for.
-Refer to Fact Pattern 41-4. With respect to Diversified's shareholders, this conduct is most likely
A) not oppressive because it is undertaken by Diversified's officers.
B) oppressive because Diversified's directors may be personally liable.
C) oppressive because Diversified's shareholders may be personally liable.
D) oppressive because it departs from the standards of fair dealing.
Correct Answer:
Verified
Correct Answer:
Verified
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