Exam 44: Shareholders Rights and Liabilities

When the board of directors of a parent corporation approves its merger with its subsidiary and sends a copy of the merger plan to the subsidiary's shareholders,such a merger is called a(n):

Catz Corporation has two majority shareholders and five minority shareholders.The five minority shareholders created a voting trust in November 2011 to control Catz through the concentration of shareholder voting power in the voting trustees.Under the Model Business Corporation Act (MBCA),this voting trust will be valid until:

Unless established differently in the Articles of Incorporation,a quorum for a shareholders meeting is a simple majority.

What is the term for a shareholders' right to offer resolutions,to speak for and against ideas at a shareholders meeting?

A ________ dividend may be revoked by the board of directors after it has been declared.

A corporation's sale of substantially all of the assets of the business must be approved by its shareholders.

Some courts have held that certain shareholders are fiduciaries of each other.These are shareholders of:

The two most common classes of shareholders are:

A dissenting shareholder seeking payment of the fair value of his/her shares (dissenters' rights)must have the right to vote on the action to which he/she objects.In which of the following cases does a shareholder have dissenters' rights despite his/her lack of voting power?

AceCom Corporation issues dividends to its 30 shareholders.Each shareholder is well aware that the corporation will be insolvent and unable to pay its creditors following the dividend distribution.Efone is one such creditor.Under the Model Business Corporation Act (MBCA),primary liability to Efone: