A board of directors may enter into any contract or transaction necessary to carry out the business for which the corporation was formed.

Question

Quizplus · Accepted Answer

According to most state and federal laws, a board of directors has the authority to enter into contracts and transactions on behalf of the corporation as long as they are necessary for carrying out the corporation's business. This power is usually outlined in the corporation's bylaws or articles of incorporation. However, there may be certain limitations and restrictions on the board's authority, so it's important for directors to be aware of any legal requirements and consult with legal counsel as needed.

A Board of Directors May Enter into Any Contract or Transaction