Intro to Corporations Flashcards
What is a corporation? Provide as many different answers, or perspectives, as you can based on the readings. Courts, including the Supreme Court of the United States, do not always provide a consistent answer.
What rights do shareholders have in a corporation?
If you are a shareholder and you do not like how the mangers are running the corporation’s business, what can you do?
What is a shareholder derivative lawsuit?
What are the key or fundamental characteristics of a corporation (as opposed to humans or other business associations)?
If the board of directors had sole authority to bring lawsuits on behalf of the corporation, how would corporate fiduciaries be held accountable?
What is the difference between a public corporation and a close corporation?
What are the sources of corporate law (the legal rules addressing the governance of the corporation and the relations among the actors involved in corporate governance)?
Which takes priority, the articles of incorporation or the bylaws?
What do the characteristics of the three primary categories of corporate securities suggest about the relationship between risk and return?
The XYZ articles of incorporation authorize the issuance of 100 common shares. The board approves issuance of 80 shares. XYZ sells 80 shares to investors. XYZ then repurchases 10 of the 80 shares. How many shares are authorized? Issued? Outstanding? What do we call the shares repurchased by XYZ?
Which is better for a corporation, an inside director or an outside director?
Who has the power to act on behalf of the corporation? Does it depend on the context? If so, who can act in which context?
How are corporate actions (or actions by corporate stakeholders) authorized?
What role does equity play in Delaware corporations law? If action by directors is legal (i.e., not prohibited by the DGCL), can directors take the action?
