A person served as director of both Corporation A and Corporation B. This director was presentat a meeting of the board of directors of Corporation A when it approved a contract betweenCorporation A and Corporation B, and his presence and affirmative vote were necessary toestablish a quorum of the board and approve the contract. The contract was fair and reasonable toCorporation A at the time it was approved. Is the contract voidable by Corporation A?a) Yes, if the common directorship was not known to the board of Corporation A.b) Yes, because the director’s presence and affirmative vote were necessary toestablish a quorum of the board and approve the contract.c) No, because common directorship cannot be a valid ground to void any contractapproved by a board of directors.d) No, because the contract was otherwise fair and reasonable to Corporation A atthe time it was approved

Where the law expressly requires a meeting for a particular transaction, any action taken by the corporation without a meeting properly held for such purpose is void.Group of answer choicesTrueFalse

Pre-incorporation contract between the promoter and the company becomes binding by ratification by ___________Question 6Answera.General meetingb.Independent Board of Director of which the promoter participatedc.Managing Directord.Independent Board of Director, of which the promoter was recused.

ssess the role of shareholders in approving a compromise or arrangement  A. Shareholders have no role in the approval process, as it is solely determined by the company's directors.  B. Shareholders have the final say in approving or rejecting a proposed compromise or arrangement  C. Shareholders are only consulted for feedback, but their approval is not legally required.  D. Shareholders can veto any proposed compromise or arrangement without considering other stakeholders.

A makes a contract with B to beat his business competitor. This is an example ofSelect one:a.Valid Contractb.Voidable Contractc.illegal agreementd.None of these

Which of the following is a void contract?*A) A contract with a minorB) A contract with a mentally competent adultC) A contract with mutual assentD) A contract with adequate consideration