Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The board of directors may notappoint a com- mittee to
A. Over see the compensation of the corpora-tion's officer sand directors
B. supervise the audit of the corporation's financial statements.
C. oversee any litigation the business may be involved in.
D. authorize dividends or distributions to the shareholders of the corporation.
Inventions and patents are always the property of the employer.
Preferred shareholders may be granted a specific preference over common shareholders
with regard to the assets of the corporation upon its dissolution.
The statutes of most states prohibit the merger of a corporation with a noncorporate
entity.
If a merger has no clear business purpose other than to eliminate the minority
shareholders, it may be found invalid.
When the corporation's articles of incorporation authorize only one class of stock, that
class is typically referred to as preferredstock.
When a creditor of a dissolving corporation receives proper notice of the dissolution,
but fails to make a claim as directed in the notice, that claim against the corporation
may be barred.
All voluntary dissolutions are considered to be judicial dissolutions.
Misconduct by corporate executives can result in criminal prosecution of both the
executives and the corporation.
Under certain circumstances, a corporation may not be allowed to use its name in the
foreign state.
Articles of dissolution are filed with these cre- tary of state to dissolve a corporation.
A quorum is the minimum number of individuals who must be present or represented at
a meeting as a prerequisite to the valid transaction of business.
An agency may be created by ratification when the principal accepts the benefits
derived from the agent acting on his or her behalf.
Sole proprietorships are created and governed by state statute.
Under the business judgment rule, directors may not be found personally liable to the
corporation or third parties for their fraudulent acts if those acts were made on behalf of
the corporation.
