Exam 45: Shareholder Rights in Corporations

Voting trusts are usually illegal.

The two most common instruments used to provide the capital structure of a corporation are stocks and bonds.

Preferred stock is ordinarily nonvoting stock.

Shares can exist for only as long as the shareholder is alive.

Which of the following is an effective means of notice to purchasers of shares that there are restrictions on the sale?

Another term for par value is book value.

Which of the following is not a factor that may lead to "piercing the corporate veil" and imposing liability on corporate owners (shareholders)?

The liability of a shareholder in a professional corporation for the malpractice of an associate:

Under the RMBCA,a preincorporation subscription agreement is irrevocable for three (3)months unless the subscription agreement provides a longer or shorter period,or all of the subscribers agree to revocation.

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

Restrictions on the transfer of stock are valid if they are not unreasonable.

A contract for the sale of shares must be evidenced in writing.

If a shareholder borrows money and delivers stock as collateral security,the creditor has a perfected security interest in the stock without any filing by the creditor.