Asked by Samantha Sciutto on Jul 26, 2024
Verified
Drones Inc. has three directors, a president, two vice presidents, a secretary, and a treasurer. Ethel is a Drone director. In most states, Ethel can also hold a Drone corporate office
A) under no circumstances.
B) under any circumstances.
C) if she resigns as director.
D) if the shareholders consent.
Corporate Office
The main or headquarters location of a company where key managerial and executive activities are conducted.
Shareholders Consent
The approval or agreement of shareholders, often required for significant corporate actions.
- Understand the legal framework surrounding shareholder rights, including voting and litigation on behalf of the corporation.
Verified Answer
EG
Eddie GarciaAug 01, 2024
Final Answer :
B
Explanation :
In most states, there is no legal prohibition against a director also holding a corporate office in the same company. This means Ethel can be a director and also serve as a corporate officer (e.g., president, vice president, secretary, treasurer) simultaneously.
Learning Objectives
- Understand the legal framework surrounding shareholder rights, including voting and litigation on behalf of the corporation.