Question

A stockholder who does not approve the action taken by the Board of Directors in proposing to amend the articles of incorporation is not allowed to withdraw from the corporation in one of the following instances

A. Creating, incurring, increasing or decreasing any ond indebtedness
B. Shortening or prolonging corporate existence
C. Investing of corporate funds in another corporation
D. Merger or consolidation

Answer 1

A stockholder who does not approve the action taken by the Board of Directors in proposing to amend the articles of incorporation is not allowed to withdraw from the corporation in the instance of creating, incurring, increasing or decreasing any bond indebtedness.

Step-by-step explanation:

A stockholder who does not approve the action taken by the Board of Directors in proposing to amend the articles of incorporation is not allowed to withdraw from the corporation in the instance of:

• Creating, incurring, increasing or decreasing any ond indebtedness

When a stockholder disagrees with a proposed amendment to the articles of incorporation, they may not withdraw from the corporation if it involves creating, incurring, increasing or decreasing any bond indebtedness. In this case, the stockholder is bound to the corporation, even if they do not approve of the action taken by the Board of Directors.