Shareholders in a corporation have the power to bind the corporation to contracts.

Question

Quizplus · Accepted Answer

Shareholders do not have the power to bind a corporation to contracts. This power is usually granted to the board of directors or authorized officers of the corporation. Shareholders have the power to elect the board of directors and vote on certain corporate matters, but they do not have direct control over the day-to-day operations of the corporation.

Shareholders in a Corporation Have the Power to Bind the Corporation