TQ 7.1: What obligations do officers and directors of a corporation owe to the corporation and its shareholders?   What duty did the court address in NorthEast Harbor Golf Club, Inc. v. Harris? What factors did that court use to determine when an officer or director is precluded for taking an opportunity individually?

TQ 7.2: What is a shareholders' derivative lawsuit? What is the demand futility test and how does it impact a shareholder derivative lawsuit? What is the business judgment rule and how does it relate to the demand futility test? Did the court in Aronson v. Lewis find the demand futility test met in that case? Why or why not?

TQ 7.3: In Westmoreland County Employee Retirement System v. Parkinson what duties did the plaintiffs claim that the defendants had breached?  What did the court conclude in that case, applying Aronson?

TQ 7.4: What does it mean to "pierce the corporate veil"? What factors have courts considered as a reason to pierce the corporate veil? 

 

TQ 7.5:  Your readings discuss several shareholder derivative lawsuits claiming that companies have failed to live up to their commitments to diversity.  What would a shareholder need to establish to prevail in such a claim?

Answer rating: 100% (QA)

TQ 71 Officers and directors of a corporation owe fiduciary obligations to the corporation and its shareholders These obligations include the duty of ... View the full answer