Exam 44: Shareholder Rights in Corporations

An individual who has been authorized to vote the share of another stockholder is said to be voting by: ______.

The net assets of a corporation may be referred to as: ______.

No writing is required for a contract by which a broker agrees with a customer to buy or sell securities for the customer because that is an agency - not a sales -agreement.

Donna called her stockbroker Henry and told him to purchase 300 shares of Royex Corporation shares at $15 per share, the current market price. Henry agreed to do so, but became distracted and failed to do so. The price of the shares rose $3 in price that day. In the evening, Donna in a telephone conversation agreed to sell 300 shares of Royex to Sid. Assuming Henry and Donna dispute the validity of the contracts, which of the contracts are enforceable in court?

To correctly transfer shares of stock, a physical delivery from the owner of the shares directly to the transferee is required.

Straight voting: ______.

A provision giving a corporation the right to purchase a shareholder's shares on the death of the shareholder is invalid unless approved by a majority of shareholders.

All shares must have a par value of at least one dollar per share.

A contract or agreement to purchase a specific number and kind of shares of stock when it is issued is called a stock: ______.

The RMBCA provides that shareholders: ______.

A contract for the sale of shares must be evidenced in writing the revised Article 8 does away with the Statute of Frauds.

Statutes authorizing the formation of professional corporations usually require that share ownership be limited to: ________.

Ownership of shares of stock may be transferred by any of the following methods except: ______.