Under the revised Model Business Corporation Act (MBCA) , if there are business debts following a defective incorporation, liability for the debts will be imposed upon:
A) all purported shareholders who acted as if a corporation had been formed.
B) shareholders and others who took no active part in the defectively formed corporation.
C) shareholders, promoters, managers, directors, and others who mistakenly believe that the corporation is in existence.
D) promoters, managers, and shareholders who participated in management and policy decisions, and also knew of the defective incorporation.
Correct Answer:
Verified
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A) could be challenged
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