James Donald was the chef executive officer of DSC communications, a Delaware corporation headquartered in Plano, Texas.
Question:
James Donald was the chef executive officer of DSC communications, a Delaware corporation headquartered in Plano, Texas. In 1990, DSC’s board of directors entered an employment agreement with Donald, which provided that Donald “shall be responsible for the general management of the affairs of the company and report to the Board.” C. L. Grimes, a DSC shareholder, sued Donald on behalf of the corporation asking the court to invalidate the employment agreement between Donald and DSC on the grounds that the agreement illegally delegated the duties and responsibilities of DSC’s board of directors to Donald. Will the Court finds that this is a case of abdication of the board’s duties to the CEO?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
No The court held that the board of directors had not illegally delegated the boards duties and resp...View the full answer
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-1259917110
17th edition
Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory
