A shareholder's fundamental right to inspect books and records of a corporation will be properly denied if the purpose of the in

Question

3 years ago

15

A shareholder's fundamental right to inspect books and records of a corporation will be properly denied if the purpose of the in

spection is to
A. Commence a shareholder's derivative suit.
B. Obtain shareholder names for a retail mailing list.
C. Solicit shareholders to vote for a change in the board of directors.
D. Investigate possible management misconduct.

Business

1 answer:

wariber [46] · Answer 1 · 2022-03-12T06:01:45+03:00

Answer:B. Obtain shareholder names for a retail mailing list.

Explanation: A shareholder or stockholder is a part owner of a Corporation,who have certain rights to the business.

A shareholder can be an organization or a person or group of individuals.

They are limited according to their level of shares in the Corporation. The shareholder is different from the Corporation as the Corporation is treated as a person with capacity to be suit in the case of fraud.

The fundamental right to inspect books can be Prevented if it is aimed at Obtaining shareholder names for a retail mailing list.