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Question 1
Sheridan and Hank are shareholders in Grant Corporation. Sheridan and Hank can be denied the right to vote at a shareholder's meeting if they:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Once shareholders have placed their shares into a voting trust, the legal right to vote those shares now belongs to the trust and is carried out by the trustee according to the rules of the trust. While the shareholders still maintain certain privileges with regards to the trust ' such as dividend rights ' they are no longer allowed to vote the shares unless and until the trust is dissolved.
Incorrect! Once shareholders have placed their shares into a voting trust, the legal right to vote those shares now belongs to the trust and is carried out by the trustee according to the rules of the trust. While the shareholders still maintain certain privileges with regards to the trust ' such as dividend rights ' they are no longer allowed to vote the shares unless and until the trust is dissolved.
Question 2
Tim will be out of town at this year's shareholders' meeting. He wants to vote, but simply will not be able to be there. Given this situation, Tim should:
Correct
Incorrect!
Correct
Incorrect!
Correct In a corporation, the easiest way for a person to vote his shares if not present at the corporation's meeting is to issue a proxy for another person or company to vote his shares. By doing so, the person will ensure that his shares are voted, whether or not he is at the meeting.
Incorrect! In a corporation, the easiest way for a person to vote his shares if not present at the corporation's meeting is to issue a proxy for another person or company to vote his shares. By doing so, the person will ensure that his shares are voted, whether or not he is at the meeting.
Correct
Incorrect!
Question 3
Tammy is issuing a proxy to a group of shareholders sponsoring an action that she favors. However, in sending her proxy material, the group failed to include a proxy statement which she could use as a template. Given this situation, what is the likely result?
Correct
Incorrect!
Correct Generally, there are no requirements that proxies must come on certain forms to be valid. Rather, a proxy is simply a form of legal contract that must specify certain information for the company to properly record the shareholder's vote. The proxy must simply contain this information ' including the shareholder's name, the number of shares she owns, her vote, etc. ' in order to place the proxy on file.
Incorrect! Generally, there are no requirements that proxies must come on certain forms to be valid. Rather, a proxy is simply a form of legal contract that must specify certain information for the company to properly record the shareholder's vote. The proxy must simply contain this information ' including the shareholder's name, the number of shares she owns, her vote, etc. ' in order to place the proxy on file.
Correct
Incorrect!
Correct
Incorrect!
Question 4
Justin recently purchased all the shares Jill has in Big Co. However, the date on which Justin purchased the shares, the company's record date for the annual meeting had already passed. As such, Justin had Jill provide him with an irrevocable proxy in order for him to vote the shares. Such a proxy is:
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Incorrect!
Correct
Incorrect!
Correct Generally, courts will not enforce a proxy as irrevocable just because the word 'irrevocable' is included on the face of the proxy. Rather, a court will look to some sign that indicates the proxy should be observed because the issuer was paid legal value for its issuance. In cases such as the one above, where consideration is deemed to be part of the proxy's issuance, then the proxy is referred to as a proxy coupled with an interest, and will be irrevocable by the issuer.
Incorrect! Generally, courts will not enforce a proxy as irrevocable just because the word 'irrevocable' is included on the face of the proxy. Rather, a court will look to some sign that indicates the proxy should be observed because the issuer was paid legal value for its issuance. In cases such as the one above, where consideration is deemed to be part of the proxy's issuance, then the proxy is referred to as a proxy coupled with an interest, and will be irrevocable by the issuer.