Law 233 Business Structures Due 11:59pm Ch. 10 Discussion Questions. 1. AthleticElite Inc. has 20,000 shares outstanding and nine directors. Its articles provide for cumulative voting. a. What number constitutes a quorum of shareholders? b. What number constitutes a quorum of directors? c. If five directors are present at a meeting, how many must vote affirma tively to amend the corporation's bylaws? d. Miguel owns 1,000 shares. If nine directors are being elected, how many votes will Miguel have? c. Assume that the corporation is holding a meeting to vote on a merger. How many votes will Miguel have? f. May Miguel call a special meeting of shareholders? g. The corporation's bylaws provide for a record date of 45 days before the annual meeting. The annual meeting will be held on June 1. By what date must an individual own shares in the corporation in order to receive notice of the meeting and to vote? 2. Athletic Elite Inc. invested a great deal of time and money in developing a new athletic shoe. The corporation conducted numerous surveys and marketing studies and consulted with scientists and proved to be a great success. Athletic Elite's stock price has plunged. Discuss whether the directors have any liability for their decision. 3. Using the facts in Question 2, would your answer be different if the direc tors' decision to develop a new athletic shoe was based on a review of various running magazines and websites? Discuss. 4. Stratego Inc. is a small corporation with nine principals, all of whom are officers, directors, and shareholders of the corporation. The corporation has been so busy trying to turn a profit that it has not held any meetings or elections for the past two years. The company owes $50,000 to a creditor but has only $35,000 in its accounts. Discuss whether the creditor may recover from any of the individuals involved in Stratego. 5. Why might a shareholder want proxy access to place her nominee on the slate for election to the board of directors? 6. Adam did not receive a dividend this year. All other shareholders in his class (Common A) received a dividend. What type of action might Adam bring against the corporation? Discuss. elite runners. Unfortunately, the week before the corporation released its new shoe, Nike Inc. released its new shoe, which