Corporations 2

Front 1

Shareholders can go directly to court if Demand Excuses, or Demand Refused what are the pleadings and presumptions?

Back 1

it must plead facts with particularity giving reasons to doubt.

Presumption: 1) Desicion was an otherwise valid exercise of business judgment.
2)Decision was valid exercise of business judgment.

Front 2

Describe the "preemptive right" to create new classes of stock:

Back 2

A right in the charter that whenever shares are issued, an individual will have a right to purchase a pro rata share.

Front 3

silver trader

Back 3

Silver Trader Sued by his account holders in direct cause of action (145(a)). He wants the corp to cover his millions in bills from the suit since he was not adjudged to be liable.

Rule:

Front 4

for the exam

Back 4

- assume unless otherwise told there are no classes of stock but common stock
- no penalty for guessing on multiple choice.
- no testing with computer.
- bring your own pencils
- if he does not give you facts you can assume them
- accurate citations to code sections make the answer stronger.