Board of Directors and Trustees in Corporate Governance
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Questions and Answers

What is the minimum qualification required to be elected as a director or trustee in a corporation?

  • Being a legal age (correct)
  • Being a majority stockholder
  • Being a member of the corporation
  • Having special qualifications specified in the bylaws

    • Which entity holds the residual power over fundamental corporate changes like amending the articles of incorporation?

  • Officers
  • Trustees
  • Stockholders (correct)
  • Board of Directors

    • What type of suit allows a stockholder to sue on behalf of a corporation?

  • Stockholder Suit
  • Trustee Suit
  • Nominal Suit
  • Derivative Suit (correct)

    • Who has the authority to authorize the sale of property belonging to a corporation?

    <p>Board of Directors</p> Signup and view all the answers

    What is the general rule regarding binding a corporation without proper authority?

    <p>It cannot be done without authority from the Board of Directors</p> Signup and view all the answers

    When must elections for directors or trustees in a corporation be conducted by ballot?

    <p>When requested by any voting stockholder or member</p> Signup and view all the answers

    What is the main responsibility of the Board of Directors or Trustees in a corporation?

    <p>Manage the corporation and seek approval from shareholders</p> Signup and view all the answers

    What is the primary role of stockholders in a corporation?

    <p>Make decisions about major corporate changes</p> Signup and view all the answers

    What is a key characteristic of an independent director in a corporation?

    <p>Is free from any relationship that could interfere with independent judgment</p> Signup and view all the answers

    What happens when the Board of Directors is elected in a corporation?

    <p>Stockholders retain corporate powers</p> Signup and view all the answers

    Which group is responsible for exercising good faith, care, and diligence in managing a corporation?

    <p>Board of Directors or Trustees</p> Signup and view all the answers

    Who has the right to vote personally or through a proxy in a corporation?

    <p>Stockholders</p> Signup and view all the answers

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