Dan is a director of a corporation,and without disclosing his conflict of interest,he entered into a contract to supply the corporation with widgets.The contract was made in the name of his mother so that the corporation would not know that Dan was involved.Pat is a minority shareholder in the corporation,has found out about the conflict,and intends to bring a derivative action against Dan.Explain what a derivative action is.Why is a derivative action appropriate in the circumstances? What must Pat show in order to bring a derivative action? What remedy might a court award?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q46: Why should a director or officer of
Q47: The Delphi Corp.owns 60 percent of Lynden
Q48: Briefly describe how a minority shareholder can
Q49: What duties do directors owe to shareholders
Q50: Mary,Martha,Marge,and Alice incorporate a private corporation for
Q52: What is the difference between the business
Q53: Which is more preferable: a simple shareholder
Q54: Explain why most corporations issue pre-emptive rights
Q55: Explain how a proxy is used.
Q56: Briefly describe the three basic groups common
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents