Asked by Michael Morales on Apr 25, 2024
Verified
Unless the articles of incorporation provide otherwise,directors cannot be removed with or without cause.
Articles Of Incorporation
A document that must be filed with a secretary of state to create a corporation. Usually, it includes the basic rights and responsibilities of the corporation and the shareholders.
- Acknowledge the legal rights and duties of corporate directors, encompassing their right to disagree and receive indemnification under the Model Business Corporation Act.
Verified Answer
AB
April BarrowApr 27, 2024
Final Answer :
False
Explanation :
Modern corporation statutes permit shareholders to remove directors with or without cause.However,most corporations have provisions in their articles authorizing the shareholders to remove directors only for cause.
Learning Objectives
- Acknowledge the legal rights and duties of corporate directors, encompassing their right to disagree and receive indemnification under the Model Business Corporation Act.