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RIGOS BAR REVIEW SERIES UNIFORM MULTISTATE ESSAY EXAM (MEE) REVIEW CHAPTER 1 BUSINESS ASSOCIATIONS CORPORATIONS AND

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I. II.

CORPORATIONS INTRODUCTION CORPORATIONS FORMATION PROCESS A. Incorporator / Promoter 1. Fiduciary Status 2. Personal Liability 3. Undisclosed Principal 4. Compensation B. Articles of Incorporation 1. Name Reservation 2. Contents a. Required Information RINS (1) Registered Office and Agent (2) Incorporator(s) (3) Name (4) Stock Information b. Optional Information FICE c. Compliance 3. Article Amendments De Facto and De Jure Status 1. De Facto Corporations 2. De Jure Corporations Estoppel Status Organizational Meeting Bylaws and Special Agreements 1. Bylaws 2. Close Corporations
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D. E. F.

Course 5328. Copyright by Rigos Bar Review Series MEE.

3. Initial Report G. Annual Report H. Hierarchy of Authority III. DOMESTIC OR FOREIGN STATUS A. Nexus to State B. Consequences of Transacting Business C. Effect on Legal Actions D. Long-Arm Statutes CORPORATE LIABILITY A. Registered Agent B. General Liability C. Purpose and Powers 1. Any Lawful Purpose 2. Ultra Vires a. Application b. Third Parties DIRECTORS AND OFFICERS A. Board of Directors 1. Elections Appointment a. Cumulative Voting Rule b. Removal 2. Dividends 3. Board Meetings a. Regular Meetings b. Special Meetings c. Voting Proxy d. Action Without Meeting e. Electronic Transmissions 4. Fiduciary Duties a. Member Duties b. Conflicts of Interest CUT (1) Competing With Corporation (2) Usurp Corporate Opportunity (3) Trade Secret Appropriation (4) Remedy c. Interested Transactions
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IV.

V.

d. Close Corporations B. Officers 1. Corporate Positions 2. Dismissal and Fiduciary Duties C. Business Judgment Rule RIS 1. Reasonable Reliance 2. Criteria Applied D. Indemnification Agreements VI. STOCK SHARES A. Stock Subscriptions and Options B. Payment for Shares C. Negotiable Securities D. Preemptive Rights E. Preferred Shares F. Other Definitions 1. Authorized Shares 2. Outstanding Shares 3. Redeemed Shares

VII. SHAREHOLDER RIGHTS A. Meetings and Voting 1. Shareholder Meetings 2. Court-Ordered Meeting 3. Notice of Meetings a. Time Requirements b. Notice Waiver 4. Resolutions and Obtaining Shareholder Lists 5. Voting in Person or Proxy 6. Quorum Requirements 7. Electronic Transmissions 8. Action Without Meeting 9. Voting Trusts and Agreements 10. Other Rights B. Records and Financial Statements 1. Corporate Records 2. Financial Statements 3. Inspection Right 4. Corporate Refusal
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C. Legal Remedies 1. Direct Action 2. Shareholders Derivative Action 3. Business Judgment Rule Defense D. Shareholder Decision Control 1. Ordinary Decisions 2. Fundamental Changes E. Dissenter or Appraisal Rights 1. Procedure 2. Fair Value 3. Minority Shareholders Relief F. Dividends VIII. SHAREHOLDER LIABILITY A. General Rule B. Statutory Liability 1. Subscription Agreement 2. Equitable Insolvency 3. Balance Sheet Test C. Veil Piercing Equitable Liability 1. Concurrent Affiliates 2. Successor Affiliates 3. Mere Sham a. Fraud b. Failure to Separate 4. Estoppel IX. MERGERS, SHARE EXCHANGE, & AFFILIATIONS A. Mergers 1. Plan of Merger 2. Articles of Merger 3. Fundamental Change B. Consolidations C. Holding Companies and Subsidiaries D. Hostile Takeover Protection 1. Equality Required 2. Procedure 3. Highest Price Duty E. Synergetic Factors
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X.

DISSOLUTION A. Voluntary Dissolution B. Resolution and Shareholder Approval C. Articles of Dissolution D. Creditors Claims 1. Rejected Claims 2. Unknown Claims 3. Enforceable Against Shareholders E. Administrative Dissolution F. Judicial Dissolution 1. Shareholder Suit FOWD a. Fraud b. Oppression c. Waste of Assets d. Deadlock 2. Creditor Proceeding 3. Receivership or Custodianship PROFESSIONAL SERVICE CORPORATIONS A. Requirements 1. Only Licensed Professionals 2. Professionals Disqualified to Practice B. Prohibited Activities 1. Only Professional Services 2. Idle Funds Exception C. Trade Name 1. Professional Ethics Control 2. Deceased Partners Name 3. Corporate Designation Requirement D. Death of Shareholder 1. Requirement to Purchase 2. Price Determination E. Shareholder Personal Liability Shield 1. Full Tort Liability 2. Dischargeable Contract Damages

XI.

XII. LIMITED LIABILITY COMPANIES A. Formation, Tradename, and Registered Agent NOMAD
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B. C.

D.

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H.

1. Name 2. Organizers Name and Address 3. Manager Managed 4. Address and Registered Agent 5. Date of Dissolution LLC Operating Agreement Management Authority 1. Managing Member 2. Third Party Notice 3. All Members Manage 4. Duties of Managers 5. Manager Liability Ownership Issues 1. Number of Members 2. Distribution Allocations 3. Members Rights 4. Ownership Transfer Standard of Conduct 1. Loyalty 2. Due Care Liability of Members 1. LLC Authority 2. Member to Entity and Other Members 3. Third Party Liability a. Contract Liability to Third Parties b. Tort Liability to Third Parties 4. Professional LLCs 5. Pierce LLC Entity Veil Dissociation 1. Events of Dissociation WIDE a. Withdrawal b. Insolvency c. Death or Incapacity d. Expulsion 2. Effect of Dissociating Member Dissolution 1. In General 2. Distribution of LLC Assets

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Course 5328. Copyright by Rigos Bar Review Series MEE.

XIII. ATTRIBUTES OF BUSINESS ENTITIES A. Sole Proprietor B. General Partnership C. Limited Partnership D. Limited Liability Partnership E. Corporation F. Limited Liability Company

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