Kris, a shareholder of E-Max, Inc., claimed that the business was being mismanaged and Kris is very concerned. Kris notified the board of directors that the corporation has been wronged and asked the board to bring suit in the name of the corporation directly.

A. In response to Kris' demand, what actions may the board take? Explain in detail the options available, with applicable law. What option would you recommend to the board if you were their legal counsel? Explain.

B. What could Kris's response be to each alternative? Explain in detail the responses available to Kris, with applicable law. What response would you recommend to Kris if you were Kris' legal counsel? Explain.