Ontario Barrister and Solicitor Practice Exam

How many directors must an offering corporation maintain at least?

1. 2 directors

2. 3 directors

3. 4 directors

4. 5 directors

The correct answer is: 3 directors

An offering corporation must maintain at least three (3) directors. This is because having a minimum of three directors allows for more diverse perspectives and viewpoints to be represented on the board, promoting effective decision-making and reducing the risk of potential conflicts of interest. Option A is incorrect because having only two directors may result in a power imbalance and lack of diverse perspectives. Option C and D are incorrect as they suggest having either too few or too many directors, which can also lead to issues such as inefficiency or lack of effective oversight. Therefore, the most ideal number of directors for an offering corporation is three.