Only the state can challenge a de facto corporation's existence as a corporate entity in a suit called an action of ________.

Question

Quizplus · Accepted Answer

The correct answer is C) Quo warranto. A quo warranto action is a legal procedure used to challenge an entity's right to operate in a certain capacity, including challenging the existence of a de facto corporation as a corporate entity. This type of action questions the basis on which a corporation claims its corporate status, and typically, only the state has the authority to initiate such a challenge.

Only the State Can Challenge a De Facto Corporation's Existence