Which of the Following Describes a Shareholder's Preemptive Rights

question 45

Multiple Choice

Which of the following describes a shareholder's preemptive rights?

• A) the right to purchase shares of another shareholder pursuant to a "buy-and-sell" agreement
• B) the right to purchase a pro-rata portion of any additional shares issued by the corporation
• C) the right of shareholders to override actions of the board of directors
• D) the right of shareholders to remove members of the board of directors without cause
• E) the right of shareholders to call special meetings

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