Shareholders, acting solely as shareholders, can incur obligations on behalf of the corporation in which they hold shares.

Question

Quizplus · Accepted Answer

Shareholders do not have the power to incur obligations on behalf of the corporation in which they hold shares. Only the board of directors or authorized officers of the corporation have the power to make legally binding decisions and enter into contracts on behalf of the corporation.

Shareholders, Acting Solely as Shareholders, Can Incur Obligations on Behalf