Quorum must be present to conduct official business

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Quorum must be present to conduct official business Duty of Loyalty Duty of Loyalty :  subordination of personal interests to the welfare of the corporation. No competition with Corporation. No “corporate opportunity.” No conflict of interests. No insider trading No transaction that is detrimental to minority shareholders.. Duty of Care Duty to Make Informed Decisions.   Directors are expected to be fully informed on  corporate matters.  Duty to Exercise Reasonable Supervision.  Directors are expected to supervise  officers when delegated work. Dissenting Directors:   r arely held individually liable to the corporation. Duty to avoid Conflicts of Interest Conflicts of Interest :   full disclosure of any potential conflicts of interest and abstain  from voting on any transaction that may benefit the director/officer personally.
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However, if transaction was fair and reasonable, it can be approved by majority of  disinterested directors Liability of Directors and Officers for torts and contracts of the employees Directors and officers may be liable for crimes and torts committed individually and/or  those committed by employees under their supervision. Shareholder derivative  suits where shareholder(s) sue directors on behalf of  corporation] What are the rights and duties of the shareholders? Shareholders generally have no right to manage the daily affairs of the corporation, but  do so indirectly by electing directors Controlling shareholders owe a fiduciary duty to minority shareholders. What are the shareholder powers?  Shareholders’ Powers  include: Approving all fundamental changes to the corporation.   Amending articles of incorporation or bylaws. Approval of mergers or acquisition. Sale of all corporate assets or dissolution. Shareholders also elect and remove the board of directors What are shareholder meetings and what are they for? Shareholders’ Meetings  must occur at least annually How many votes does the shareholder receive?   Voting requirements and procedures are: Notice of Meetings.  Proxy Materials. Shareholder Proposals. Quorum Requirements:   shareholders representing more than 50% of shares must be  present to conduct business.
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Voting Lists record of stock ownership. Other Voting Techniques.  Shareholder Voting Agreements. Voting Trusts—Trustee votes the shares. What is cumulative voting?   Cumulative Voting Cumulative Voting allows minority shareholders to get a board  member elected.
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