Exam 45: Shareholder Rights in Corporations

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

When an individual owns a share of stock in a corporation,that individual:

Preferred stock cannot have priority over common stock with respect to dividends.

Until a transfer is recorded on its books,a corporation is entitled to treat the person whose name is on its books as the owner of its stock.

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

Each shareholder owns a proportionate share of the property of the corporation.

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

Delivering stock to a creditor as security for a debt owed by the shareholder:

A preincorporation subscription to stock is generally treated as an offer to the corporation to buy the stock when the corporation is formed and the stock is thereafter issued.

Statutes sometimes provide that shareholders shall have unlimited liability for the wage claims of corporate employees.

The Toy Corporation issued 200 shares of stock with no par value.The articles of incorporation provided that the board of directors had the right to fix the value of the stock.Through subscription agreements between the directors and two subscribers,101 shares were issued to Maria Perez for $5,000,and 99 shares were issued to Ken Pilar for $15,000.Toy is now insolvent and is unable to pay the $6,000 it owes to Pine,its major supplier.Pine has brought suit against Perez,claiming that the subscription agreement was invalid.How will the case be decided?

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?

A provision giving a corporation the right to purchase a shareholder's shares on the death of the shareholder is invalid.

The RMBCA provides that shareholders:

If a share certificate is lost,destroyed,or stolen,the ownership of the shareholder is destroyed.

Which of the following statements is not true of common stock?

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

Upon acceptance of a subscription after incorporation,the subscriber immediately attains the rights,privileges,and liabilities of a shareholder,even though the subscriber has not paid any of the purchase price.

Shares of stock that have been issued to stockholders in a corporation are said to be outstanding.

Manis owns 100 shares of stock of the Linquist Corporation.She sells her stock to Sosnik and delivers to him: (1)her stock certificate for 100 shares and (2)a written,signed assignment of the 100 shares to Sosnik.The assignment form printed on the back of the share certificate is left blank and is not signed.Sosnik refuses to take the certificate and the assignment on the ground that Manis must fill in and sign the assignment form on the stock certificate to make the transfer of stock effective.Is he correct?