The board of directors of Gismos & Widgets Inc., a manufacturer of computer components, has embraced the

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The board of directors of Gismos & Widgets Inc., a manufacturer of computer components, has embraced the “green shift.” It takes great pride in its decisions that have benefited both the corporation and the environment. Examples of their environmentally friendly decisions include replacing all light bulbs with lower wattage bulbs, replacing old delivery vehicles with low emission vehicles, installing solar panels on the rooftop, and instituting a recycling program for obsolete computers. Recently, a member of the board suggested that Gismos &Widgets purchase a large tract of land and have it preserved as a sanctuary for migrating birds. Other members of the board are in agreement, but a group of shareholder activists have gotten wind of the idea and have threatened to sue the directors. If the board approves the purchase, on what potential basis could the shareholders sue? Are they likely to be successful? Explain.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Canadian Business & the Law

ISBN: 978-0176501624

4th edition

Authors: Dorothy DuPlessis, Shannnon o'Byrne, Steven Enman, Sally Gunz

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