Reference no: EM132873709

Question 1: Majority members of a company can vote to ratify the breach of duty by a director. In which of the following circumstances will a company be able to ratify a director's breach?

1) The majority members (who are also directors of the company) repeatedly vote to pay directors attractive compensation packages but refuse to declare dividends even though the company is profitable.

2) The directors issued shares to Party X in order to raise funding to pay for a company's purchase although the real reason was to forestall a takeover attempt by Party Y. The share issue was ratified by the majority members in general meeting.

3) The director accepted an offer to sell a factory on reasonable commercial terms without first obtaining the requisite resolution.

4) The majority members pass a resolution to approve the sale of the company's property to one of the directors at less than commercial terms. Business