Question

1. Under the doctrine of respondeat superior, a corporation can be held liable for

1. torts committed by its directors, officers and employees on third party victims.
2. depriving shareholders of their preemptive rights.
3. depriving minority shareholders of their cumulative voting rights.

2. The purpose of shareholders minutes is which of the following?

1. a prerequisite to incorporation.
2. to memorialize the topics discussed.
3. an opportunity to exercise preemptive rights.

Answer 1

1.Under the doctrine of respondeat superior, a corporation can be held liable for the torts committed by its directors officers and employees, as the law holds the principal liable for the action of its agents ( employees / directors / managers). Option a is right.

2.Minutes of meeting are the legal records of proceedings of shareholders' meetings and decision taken there. The purpose is to memorialise the topics discussed and decision taken, so that they can be used for future reference and legal purposes. Option b is right