Question

Individual corporate directors have the ability, as agents of a corporation, to bind the corporation: a. As long as the articles of incorporation allow it. b. In all situations. c. Not at all, as individual directors do not have agency power.

Answer 1

Answer: c. Not at all, as individual directors do not have agency power

Explanation: An individual director cannot bind a corporation to a contract. For a contract to be binding, it has to be agreed by the board of directors as a unit.

A director serves on the board of a company and makes decisions on the strategic goals of the company. They are also responsible for such obligations such as auditing. The powers they have are listed in the articles of incorporation, and while they are agents of a company as a body, they are not as individually.