Author Question: The stockholders of the Apex Corporation attended a special meeting of the stockholders called to ... (Read 145 times)

2125004343 · **on:** Jun 24, 2018

The stockholders of the Apex Corporation attended a special meeting of the stockholders called to discuss matters of extreme urgency to the corporation. A quorum was not present when the meeting opened, nor was a quorum present when the matters to be treated in the meeting were discussed. Management, however, felt that the importance of the issue was significant enough to warrant continuation of the meeting without a quorum, and the stockholders voted on the issues presented during the meeting. During the last fifteen (15 ) minutes of the meeting, just prior to the cocktail hour regularly attended by many stockholders, enough stockholders had arrived to constitute a quorum. Were the issues of this meeting dealt with in a valid manner?

Question 2

Under the doctrine of ______, a corporation is ______ to third persons for the tortious acts of its officers, employees, and agents to the same extent that a natural person is liable for the acts of agents and employees.
A) respondeat superior, not civilly liable
B) business judgment, criminally liable
C) business judgment rule, civilly liable
D) respondeat superior, civilly liable

Bigfoot1984 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

No. It is necessary that a valid stockholders' meeting open with a quorum. If this occurs, it is not necessary that the quorum be maintained through the course of the meeting. The voting at this meeting is not binding.

Answer to Question 2

D