Exam 35: Shareholder Rights

Kris,a shareholder of E-Max,Inc.,claimed that the business was being mismanaged.Kris notified the board of directors that the corporation has been wronged and asked the board to bring suit in the name of the corporation directly.In response to Kris' demand,what actions may the board take? What could Kris's response be to each alternative?

All of the following are shareholder rights EXCEPT

Maureen,a shareholder of Metra,Inc.,is unhappy with how the corporation was being managed.Maureen wants the company to sell off its unproductive divisions.Which statement is correct?

Unless the form provides for a longer period,a proxy is valid for how long under the Model Act?

Before filing a derivative lawsuit,shareholders must

Luella just purchased 5 shares of common stock in TriColor,Inc.for $250.Luella has the right to

Minority shareholders have no right to overturn an ordinary business transaction between the corporation and a controlling shareholder.

A shareholder with a large block of stock whose goal is to influence management decisions and strategic direction is called

A corporation must obtain shareholder approval before the company

Alberta is not employed by E-prise,Inc.but she is a member of E-prise's board of directors.Alberta is an outside director.

List and describe the various rules that apply to fundamental corporate changes requiring shareholder approval.?

Under both state and federal law,a shareholder can generally revoke a proxy at any time.

At least once every three years,companies must take a nonbinding shareholder vote on the compensation of the five highest-paid executives.This is referred to as

The percentage of voters who must be present for a meeting to count is referred to as

The proceeds,if any,of a derivative lawsuit go to

A derivative lawsuit is filed by a shareholder of the corporation if his or her own rights have been harmed.

Alfrieda purchased an ownership interest in a corporation.This gives her the right to use the equipment owned by the corporation,as long as her usage does not interfere with the normal operation of the business.

Controlling shareholders have no fiduciary responsibility to minority shareholders.

Ev-R-Green Co.,a private corporation,decides to sell substantially all of the company's assets.Under the Model Act and many state statutes

Lucy owns 10 shares of stock in Quamba,Inc.Lucy wishes to place a proposal in a company's proxy statement to be voted on at the shareholders' meeting.Pursuant to the SEC rules,before Lucy is allowed to place her proposal on the proxy statement she must