Standard board member could be liable to the damages done in the corporation under the “the

prudent person”, this damages could be due to negligence from the board members. This issue
can be avoided by considering factors when accepting invitations into the board. An effective
board ensure that are well acquainted with the organization and the role the board in the
corporation and the outcome performances: nurture the members to develop as a working team
(Mwenja & Lewis, 2009)
First, the stakeholder as the director will have to make reasonable decisions. In Oregon, this
means the sole director will have to put in much effort in thought as they influence the decision
made in the corporation. Therefore to avoid making the wrong decision the sole director seeks
advice from professionals. Secondly, the sole owner cannot take his/her duties lightly and the
stakeholder will have to consider the appropriate statute under the “Standard of Conducts” when
faced with good or bad decision making.
The corporation should hold at least two meetings with stakeholders at the time stated or fixed
with the bylaws. This meeting will be held at the places in or out of the state specified and in
accordance with the bylaws. If the board directors do specify the meeting, it will then occur
solely by remote communication. More so, the corporation should also consider holding a special
meetings for the shareholders. The board of director’s call or any other person who makes
communication and he/she is authorized to the article incorporation to make the call inform the
shareholders about the meeting. The central concern in many management is to know the need of
the decision and how they should be made (Wilson, 2010).
The shareholders who signs about their special meeting has the power to revoke the demands to
be addressed from the shareholders in the meeting by signing a written proposal of the
revocation. The revocation has validity that is considered by the corporation and contains
sufficient demand to cause the corporation to hold a special meeting. On the other hand, the
publicly traded corporation may also hold a special meeting if the corporation receives demands
from the shareholders if it is authorized by the article of incorporation or bylaws. If not fixed
there are court-ordered meetings to address the shareholder’s concern and the date is the one first
signed by the shareholder.
When the stakeholders have their meeting, the chairman presides, the chairperson is appointed as
per the bylaws or by the board. More so, the rules that are set should be fair to the stakeholders
and this influences what the corporation decides. The action that the corporation takes without
the shareholders meeting then the stakeholders are titled to vote the action.
Cost overrun is common among most of the corporation’s projects as many strategies are being
put in place to identify the problems and finding a clear direction to improve (Doloi, 2011).
There are preventative rights that govern the common shareholders. If the corporation offers its
shares for sale then there are a limited or specific number of shares that the stakeholder can buy
before the offer is issued to potential stakeholders. These preventative rights are valuable only to
the common shareholders since they are offered at a subscribed prize on a per share basis. In the
corporation there are no specific duties that are aimed to be performed by stakeholder instead,
the stakeholder’s liability will happen in very rare cases.
When the court finds out that the corporation is basically sham due to lack of capital and
finances or when the corporation fails to adhere to a simple observation like time, meeting etc.
Therefore buying a single share means the shareholder will not have anything to lose in case they
have a capital investment in the corporation. When the shareholder does not have any liability
then, the majority of shareholders who may breach the fiduciary duties to the minority
stakeholders. This affects the corporation’s economic standard when some gang up against the
other.
Close-held corporation gets at the risk when the majority stakeholder makes poor business
decisions that consequently affect the corporation. This means that the majority of stakeholders
have to be paid before the corporation resolves to make the decision of purchasing the minority
stake in a closely-held corporation. Even if the majority owner are competent they are supposed
to share their interest with the new majority owners who have not shown their high competence.
At all times shares of the corporation are all outstanding, one or two shares have the unlimited
voting rights and which both are entitled to share the corporation’s assets when the corporation’s
dissolution must be outstanding. Contribution for the job shares, this happens when the
individual in a corporation shares the same position that is classified as a job sharing position.
Usually, the local government will contribute to obtaining the coverage for that individual’s
contribution. One individual contribution should not be higher than one contributor.
Reforms have been instilled in the stakeholders and they have been given more power to vote the
directors more so, in the executive compensation issue (Yermack, 2010). At Oregon, according
to the article of articulation, the directors are voted on the basis of the vote’s popularity. The
shareholder is not provided with the right to accumulate their votes to the director unless the
article of accumulation provides so. The statement which is provided in the article articulation is
“all shareholders are entitled to accumulate their votes for the director