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Question 1
What is meant when a company is said to have a "staggered board?
Correct A company that has a staggered board is a company in which each year a percentage of the board, but not the whole board is elected. Typically, a board will have an odd number of members and a percentage of that board (for example, three members of a nine member board) might be elected at the annual meeting.
Incorrect! A company that has a staggered board is a company in which each year a percentage of the board, but not the whole board is elected. Typically, a board will have an odd number of members and a percentage of that board (for example, three members of a nine member board) might be elected at the annual meeting.
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Incorrect!
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Incorrect!
Question 2
When a company decides to hold a "special meeting", which of the following is the most likely reason?
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Incorrect!
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Incorrect!
Correct Special meetings are typically called in situations where the company is undertaking an unusual (i.e. not in the ordinary course of its business) form of transaction which requires shareholder approval. Calling a special meeting is a complicated and costly affair as each shareholder must be notified of the meeting and only the issues in that notice are legally allowed to be discussed at the meeting.
Incorrect! Special meetings are typically called in situations where the company is undertaking an unusual (i.e. not in the ordinary course of its business) form of transaction which requires shareholder approval. Calling a special meeting is a complicated and costly affair as each shareholder must be notified of the meeting and only the issues in that notice are legally allowed to be discussed at the meeting.
Question 3
Which of the following individuals or groups are likely to be shareholders in a large, public corporation?
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Correct Virtually anyone can hold investments in companies ' and in major companies, groups and individuals from any of the above categories are likely to hold securities.
Incorrect! Virtually anyone can hold investments in companies ' and in major companies, groups and individuals from any of the above categories are likely to hold securities.