Question

Amy is on the board of directors of Computers Plus. Computers Plus is looking for a warehouse to purchase. Amy owns a warehouse. In order for Amy to sell her warehouse to Computers Plus, a. the transaction must be fair to both Amy and Computers Plus. b. a court must review the opportunity to determine its favorability. c. she must resign her position on the board of directors of Computers Plus before any negotiations for the warehouse begin. d. the disinterested members of the board of directors must approve the transaction.

Answer 1

Amy and Computers Plus

In order for Amy to sell her warehouse to Computers Plus,

d. the disinterested members of the board of directors must approve the transaction.

Step-by-step explanation:

For the transaction between Amy and Computers Plus to take place, the principle of independence requires that only the disinterested members of the board of directors must approve it. These include other members of the Company's Board of Directors without any material financial interest in Amy's warehouse, with the exception of Amy.