Question

After a corporation has commenced business or issued shares, the corporation can be ________ if the board of directors recommends dissolution and a majority of voting shareholders favor dissolution.

A) rescinded
B) remanded
C) administratively dissolved
D) voluntarily dissolved

Answer 1

A corporation can be voluntarily dissolved after the board of directors recommends dissolution and a majority of voting shareholders approve it.

Step-by-step explanation:

After a corporation has commenced business or issued shares, the corporation can be voluntarily dissolved if the board of directors recommends dissolution and a majority of voting shareholders favor dissolution. In such a scenario, the dissolution is carried out according to the corporation's bylaws and relevant laws of the jurisdiction where the corporation is established. The board of directors acts on behalf of the shareholders recommending actions that they deem necessary for the corporation, including the dissolution.