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MARCH 2009 BUSINESS LAW CHAPTER 48 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. To constitute a quorum, a specific number of shareholders or voting shares must be present. This number is usually found in the bylaws of the corporation. 2. The board of directors relied on BAG as they had no knowledge that BAGS’s work was not good. The court found that the board should not be held personally liable. If the board had relied on accountant’s financial statements that were no good, they also would not be personally liable. 3. Dunaway should have disclosed ALL matters that related to Eckerd. His duty was to Dunaway, not himself. I believe he violated a fiduciary duty to the corporation. 4. The court found in favor of Phillips as to the corporation because when a corporation breaks a contract, it is liable for breach of the contract. It doesn’t matter why it broke the contract. The court found against Phillips as to the individuals as there was no proof that they acted maliciously to hurt him.
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