ABC Co Is Owned by a Group of Shareholders, All of of Whom

question 38

Multiple Choice

ABC Co. is owned by a group of shareholders, all of whom vote independently and all of whom want personal control over the firm. If straight voting is used, a shareholder:

• A) Must either own enough shares to totally control the elections or else he/she has no control whatsoever.
• B) Will be able to elect at least one director as long as there are at least three open positions and the shareholder owns at least 25% plus one of the outstanding shares.
• C) Must own at least two-thirds of the shares, plus one, to exercise control over the elections.
• D) Is only permitted to elect one director, regardless of the number of shares owned.
• E) Who owns more shares than anyone else, regardless of the number of shares owned, will control the elections.

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Definitions:

Lateral

Relating to, or situated at, the side of an organ or structure.

Left Lower Quadrant

An area of the abdomen that contains parts of the large and small intestine, left ovary and fallopian tube in women, and the left ureter.

Neutral

Not taking sides in a conflict or dispute; impartial.

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field, with two types: positive and negative.