Question

Rianna is an officer of New Stage, a theater production company. Without asking any other officers, she decides that New Stage should sell gardening tools over the Internet. She makes contracts with suppliers and an order-fulfillment company. The only action that may NOT be taken is that:

a. shareholders can files a lawsuit on behalf of the corporation.
b. the corporation can file a lawsuit against her.
c. she can file a lawsuit against the corporation if it refuses to reimburse her for her expenses.

Answer 1

Rianna can file a lawsuit against the corporation if it refuses to reimburse her for her expenses.

Option: (C)

Explanation:

• For the loss that has been suffered due to the negligence and actions of the corporation, Rianna can legally attempt to sell the property of the corporation as an officer, but the action of selling has to be initiated with the consent of other officers of the corporation.
• The shareholders in the corporation can also demand to sell out the property owned by the corporation in order to pay them for their loss.