If Dividends Are Not Declared for Five Years,but the Company

question 29

Multiple Choice

If dividends are not declared for five years,but the company has accumulated earnings each year,the shareholders may:

• A) petition the court of law for redress.
• B) override the board with a two-thirds vote.
• C) ask for an injunction requiring a dividend to be declared.
• D) do nothing but sell their stock.

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Definitions:

Exempt Amount

The portion of income or value that is not subject to tax or is excluded from calculation under certain conditions or allowances.

Family And Medical Leave Act

A U.S. law that provides employees with unpaid, job-protected leave for family and medical reasons, with continuation of group health insurance coverage.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Health Maintenance Organizations

A type of health insurance plan that provides comprehensive health services to members for a fixed, prepaid fee, emphasizing preventative care.