A ________ places a ceiling on director liability for breach of duty; the board and the shareholders, however, may amend the corporate charter to reduce the cap.
A. self-executing statute
B. charter option statute
C. SEC oversight statute
D. cap on monetary damages statute
Answer: D
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Informational reports emphasize reasoning and conclusions; analytical reports emphasize facts
Indicate whether the statement is true or false
Tivo Corporation purchases its raw materials on credit with terms of 3/10, net 30. What is the annual percentage rate (APR) of non-free trade credit if Tivo does not take the discount and pays on Day 30. In your computations, assume there are 360 days in a year.
A. 54.00% B. 27.84% C. 37.11% D. 55.67% E. 111.34%
The doctrine of sovereign immunity cannot immunize a foreign nation from the jurisdiction of U.S. courts
a. True b. False Indicate whether the statement is true or false
Ethical Conduct. Unable to pay more than $1.2 billion in debt, Big Rivers Electric Corp filed a petition to declare bankruptcy in a federal bankruptcy court in September 1996. Big Rivers' creditors included Bank of New York (BONY), Chase Manhattan Bank,
Mapco Equities, and others. The court appointed J. Baxter Schilling to work as a "disinterested" (neutral) party with Big Rivers and the creditors to resolve their disputes and set an hourly fee as Schilling's compensation. Schilling told Chase, BONY, and Mapco that he wanted them to pay him an additional percentage fee based on the "success" he attained in finding "new value" to pay Big Rivers' debts. Without such a deal, he told them, he would not perform his mediation duties. Chase agreed; the others disputed the deal, but no one told the court. In October 1998, Schilling asked the court for nearly $4.5 million in compensation, including the hourly fees, which totaled about $531,000, and the percentage fees. Big Rivers and others asked the court to deny Schilling any fees on the basis that he had improperly negotiated "secret side agreements." How did Schilling violate his duties as a "disinterested" party? Should he be denied compensation? Why or why not?