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    Question

    Section 188: Related Party Transactions. Consider:

    (1) Board approval is mandatory for all RPTs. (2) Ordinary resolution of members required in certain cases. (3) Related party member cannot vote on such resolutions. (4) Contracts without approval are voidable.
    A 1 and 4 Correct Answer Incorrect Answer
    B 2, 3, 4 Correct Answer Incorrect Answer
    C 1, 2, 3 Correct Answer Incorrect Answer
    D 1, 2, 4 Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    (1) is incorrect because some RPTs require only Board approval; some require member approval depending on thresholds.

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