Provided that most of the directors of a corporation are independent,if shareholders bring a derivative action against the directors,the burden of proving that bringing the action is in the best interest of the corporation lies on the:
A)company secretary.
B)secretary of state.
C)board of directors.
D)shareholders.

Question

Quizplus · Accepted Answer

If a majority of the directors are independent,the shareholders bringing the derivative action have the burden of proving that there was bad faith or no reasonable investigation or that bringing the action is in the best interest of the corporation.

Provided That Most of the Directors of a Corporation Are