Asked by Danielle Marie on Jun 04, 2024
Verified
Pamela is a corporate promoter for Nulla Corporation,a corporation yet to be formed.Pamela determines that Nulla will need to lease a building in which to conduct its business.Pamela owns an office building that is suitable for Nulla.What should Pamela do if she wants to make a contract for Nulla to lease the building from her?
Corporate Promoter
An individual or entity that undertakes the creation and organization of a corporation, including the arrangement of its initial affairs.
Lease
A contract granting use or occupancy of property during a specified period in exchange for a specified rent or other terms.
- Comprehend the idea and prerequisites for a de facto corporation.
- Understand the legal structures governing transferability agreements and their impacts on shareholders and corporations.
Verified Answer
KP
Kaitie PerinJun 10, 2024
Final Answer :
Since it is a breach of fiduciary duty for Pamela to self-deal with the prospective corporation,when the corporation's board of directors considers whether it will adopt the contract,Pamela must disclose all the material facts including her interest in the contract and obtain approval of a disinterested board of directors.
Learning Objectives
- Comprehend the idea and prerequisites for a de facto corporation.
- Understand the legal structures governing transferability agreements and their impacts on shareholders and corporations.
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