Three Classmates Incorporated About a Week After Graduation

Three classmates incorporated about a week after graduation. The authorized capital was 500,000 common no-par-value shares. Each took one share; each was a director. If the directors decide to issue more shares from the treasury to raise more capital, which of the following provisions ensures that they keep their proportionate holdings?

A) Preemptive right provision
B) Relief-from-oppression provision
C) Derivative-action provision
D) Indoor-management rule
E) Dissent procedure

Correct Answer:

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