Amy is on the board of directors of Computers Plus.Computers Plus is looking for a warehouse to purchase.Amy owns a warehouse.In order for Amy to sell her warehouse to Computers Plus,
A)the transaction must be fair to both Amy and Computers Plus.
B)the disinterested members of the board of directors must approve the transaction.
C)she must resign her position on the board of directors of Computers Plus before any negotiations for the warehouse begin.
D)a court must review the opportunity to determine its favorability.

Question

Quizplus · Accepted Answer

The disinterested members of the board of directors must approve the transaction to ensure that there is no conflict of interest and that the transaction is fair to both Amy and Computers Plus. As Amy is on the board of directors, she cannot make the decision about the purchase of the warehouse herself. Therefore, the decision must be made by the other members of the board who have no personal interest in the transaction.

Amy Is on the Board of Directors of Computers Plus