Hakot Corporation invested its funds in a foreign corporation with the approval of its board of directors. Perfect, a shareholder, questioned the investment made as the same was not approved by the required votes of the stockholders. Immediately thereafter, Hakot Corporation called a stockholders' meeting to have such investment ratified. May the illegal investment be ratified? Explain.

Hakot Corporation invested its funds in a foreign corporation with the approval of its board of directors. Perfect, a shareholder, questioned the investment made as the same was not approved by the required votes of the stockholders. Immediately thereafter, Hakot Corporation called a stockholders' meeting to have such investment ratified. May the illegal investment be ratified? Explain.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 3RP

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