OK Bar Business Organizations 1

Question 1

Under the Oklahoma General Corporation Act, what is the minimum number of directors a newly formed corporation must have?

Accepted Answer

One

Answer

Oklahoma's corporation statute allows a newly formed corporation to have as few as one director, consistent with modern corporate law trends.

Question 2

A shareholder derivative suit allows a shareholder to:

Accepted Answer

Sue on behalf of the corporation for wrongs done to the corporation

Answer

In a derivative suit, the shareholder is the nominal plaintiff but sues on behalf of the corporation to redress wrongs done to the corporation itself.

Question 3

The business judgment rule protects corporate directors from personal liability when they:

Accepted Answer

Act in good faith, with due care, and in the honest belief that the action serves the corporation's best interest

Answer

The business judgment rule creates a rebuttable presumption that directors act on an informed basis, in good faith, and in the honest belief that the action is in the corporation's best interest.

Question 4

Piercing the corporate veil is a doctrine that:

Accepted Answer

Holds shareholders personally liable for corporate debts by disregarding the separate corporate form

Answer

Courts pierce the corporate veil to hold shareholders personally liable when the corporate form is used to perpetrate fraud, evade obligations, or when the corporation lacks a separate identity from its owners.

Question 5

Under the Oklahoma General Corporation Act, which of the following is NOT required to be included in a corporation's articles of incorporation?

Accepted Answer

The names of the initial board of directors

Answer

Oklahoma's articles of incorporation require the corporate name, authorized shares, registered agent information, and incorporators' names, but not the names of initial directors.

(OK Bar) Oklahoma Bar Exam Practice Test

(OK Bar) Oklahoma Bar Exam Practice Test

OK Bar Business Organizations 1