Asked by
Charlize Mackenzi
on Nov 10, 2024
Verified
With regard to the law of corporations, which of the following is true?
A) In many jurisdictions, pre-emptive rights entitle a shareholder to pass on their right to vote to someone else.
B) If a minority shareholder is treated unfairly, the appropriate relief to request is that the court lift the corporate veil.
C) Relief from oppression provisions allow a party who has contracted with the corporation to force the corporation to honour a contract it has signed in an irregular manner.
D) A director of a corporation could not be personally liable on a promissory note even if he just signed his own name as long as at the time he intended to sign on behalf of the corporation.
E) A creditor of a corporation could sue for some remedy if the directors of the corporation voted for a resolution to pay a dividend when the corporation was insolvent.
Lift The Corporate Veil
A legal action to treat the rights or liabilities of a corporation as the rights or liabilities of its shareholders or directors.
Pre-Emptive Rights
Rights granted to existing shareholders to purchase additional shares before the company offers them to the public, to maintain their percentage of ownership.
Insolvent
A financial state where an individual or entity cannot meet their debt obligations as they come due or has liabilities exceeding assets.
- Discern the legal avenues accessible to shareholders for rectifying duty breaches and preserving their rights within a corporation.
- Identify the preemptive rights of shareholders and understand their role in safeguarding the interests of shareholders.
Verified Answer
MP
Learning Objectives
- Discern the legal avenues accessible to shareholders for rectifying duty breaches and preserving their rights within a corporation.
- Identify the preemptive rights of shareholders and understand their role in safeguarding the interests of shareholders.