Commercial Law, 2012 Bar — Question 63

MULTIPLE CHOICE

The term of one (1) year of the Board of Directors of AAA Corporation expired last February 15, 2012. No new election of the Board of Directors was called, hence, the existing members of Board continue as Directors in hold over capacity. Which statement is most accurate? A) This is allowed provided there is a valid and justifiable reason for not calling for an election of the new members of the Board. B) This is not allowed because the term of the directors must only be for one (1) year. C) The positions of the members of the Board of Directors will be automatically declared vacant. D) Acting as members of the Board of Directors in a hold over capacity must be ratified by the stockholders.

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