Baste, a member of Panteleon, Inc. a close corporation, engaged the services of Mr. Orcio to provide HR consultancy services to the corporation. No meeting was held to approve the contract with Mr.  Orcio. However, all directors signed the agreement for lease of services. Can the contract be questioned on the ground that there was no approval by the board in a meeting called for such purpose?

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In a close corporation decisions are typically made by the shareholders or directors and the procedures for approving contracts and transactions may b... View the full answer