Which of the following is a right of directors in a corporation?

Prepare for the New Brunswick Bar Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Directors of a corporation possess specific rights tied to the governance and management of the organization, and one of these essential rights is the ability to inspect company books. This right is fundamental for directors to fulfill their fiduciary duties, such as ensuring transparency, accountability, and compliance within the corporation. By inspecting company books, directors can assess the corporation's financial health, understand operations, and make informed decisions that align with the best interests of the shareholders.

Maintaining an accurate and transparent record-keeping system is vital for directors to provide oversight and guidance effectively. This right empowers directors to conduct their responsibilities diligently and respond to any concerns regarding the corporation's management and financial practices.

While the abilities to manage the corporation without oversight, unilaterally make major business decisions, and inspect external audits may seem appealing, they do not accurately reflect the rights and responsibilities of directors within the context of good governance practices. Directors are expected to act collectively and with accountability, ensuring they adhere to proper procedures and responsibilities set by law and corporate governance standards.

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