Question

Purely ulta vires acts of the officers of a corporation to invest corporate funds in another business or corporation, ie, acts not contrary to law, morals, and public policy may be ratified by:

A. Majority vote of all members of the board
B. Stockholders with 1/2 of voting power
C. Stockholders holding 2/3 of the voting power
D. Majority vote of the board present

Answer 1

Purely ultra vires acts by corporate officers can generally be ratified by stockholders holding 2/3 of the voting power, as they are the owners of the public company.

Step-by-step explanation:

In the context of corporate governance, when officers of a corporation take actions that are beyond their authority but are not illegal, immoral, or against public policy, these actions can be ratified. Ratification often requires the approval of a specific threshold of shareholders. The correct option for ratification of purely ultra vires acts that are not contrary to law, morals, and public policy is typically dependent on the corporation's bylaws or applicable law. However, it is commonly seen that such actions require approval by a majority vote of shareholders holding sufficient voting power, often stockholders holding 2/3 of the voting power (Option C), as they are the owners of the public company.