Stuart corporation has an eight-member board of directors


Stuart Corporation has an eight-member board of directors. The CEO calls an emergency board meeting to approve a major transaction. 4 out of the 8 board directors are not in the country. Would a unanimous vote by the four available directors at a special meeting of the board be effective?

If not, could effective board action be taken with the CEO obtaining a proxy from the hospitalized board member authorizing the CEO to cast the director's vote in favor of the sale; then the board meeting is held with the other four directors unanimously approving the transaction?

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Finance Basics: Stuart corporation has an eight-member board of directors
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