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Martin,Martina,and Melvin Are Shareholders of Random Corporation

Question 65

Multiple Choice

Martin,Martina,and Melvin are shareholders of Random Corporation.They each hold several hundred of the 5,000 outstanding shares.The three enter into an agreement that they will always vote against any attorney in a board of director's election and vote against any plans to expand the corporation's business overseas.This agreement is:


A) an enforceable voting agreement
B) valid as to the overseas expansion,but invalid with respect to attorneys on the board
C) invalid because any such voting agreement is against public policy because it limits a shareholder's right to vote freely on all matters
D) invalid because the agreed votes are contrary to the best interests of the corporation,but would be valid where the shareholders agree to vote in the corporation's best interests
E) valid so long as the board of directors approves it

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