Liability of Shareholders Self-Quiz








A shareholder who subscribes to par-value stock before the formation of a corporation:
Choice 1 must pay stated value of stock or get sued for breach.
Choice 2 must pay current value of stock or get sued for breach.
Choice 3 is not liable because the shareholder can revoke the invalid agreement.
Choice 4 is not liable because a shareholder is never personally liable.
A shareholder might incur personal liability for corporate obligations if he or she:
Choice 1 purchases no-par stock.
Choice 2 purchases stock for less than stated value.
Choice 3 knowingly receives a dividend from retained earnings.
Choice 4 fails in his fiduciary duty to stockholders.
Which of the following shareholders might be liable for back wages to employees of a close corporation that has gone bankrupt?
Choice 1 the largest shareholder.
Choice 2 the ten largest shareholders.
Choice 3 any shareholder owning greater than 10% of the company's shares.
Choice 4 all shareholders.
In the question above, the court may justify the determination that the top ten shareholders are liable for the employees' wages because:
Choice 1 they are the ones who hired the employees.
Choice 2 they are likely to be on the company's board.
Choice 3 they are implied to have knowledge of the situation.
Choice 4 they are the "deep pockets."

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