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NY Business Relationships Flashcards

6 cards from real NYLE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 NY Business Relationships flashcards as text

  1. Under New York's Business Corporation Law (BCL), what is the minimum number of directors required for a corporation?

    Answer: One

    BCL § 702 allows a New York corporation to have as few as one director.

  2. In New York, a limited liability company (LLC) is formed by filing what document with the Department of State?

    Answer: Articles of Organization

    Under NY LLC Law § 203, an LLC is formed by filing Articles of Organization with the Secretary of State.

  3. Under New York's Partnership Law, which type of partner in a limited partnership has personal liability for partnership debts?

    Answer: General partners

    In a limited partnership, general partners have unlimited personal liability for partnership debts, while limited partners' liability is limited to their investment.

  4. Under the BCL, a shareholder's derivative action requires the plaintiff to first do what?

    Answer: Make a demand on the board of directors to take action, or show that demand would be futile

    BCL § 626(c) requires a derivative plaintiff to make a demand on the board or demonstrate that demand would be futile before filing suit.

  5. Under New York law, what is the fiduciary duty owed by an agent to a principal?

    Answer: A duty of loyalty, obedience, and reasonable care

    Under New York agency law, an agent owes the principal fiduciary duties of loyalty, obedience, and reasonable care in performing agency duties.

  6. New York's publication requirement for LLCs under LLC Law § 206 requires publication in how many newspapers?

    Answer: Two newspapers (one daily, one weekly) in the county of formation

    LLC Law § 206 requires publication of a copy or substance of the Articles of Organization in two newspapers in the county where the LLC is located for six consecutive weeks.