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:

Calendaring

The process of scheduling and managing dates for court appearances, deadlines, meetings, and other important events, especially in legal contexts.

E-mail

E-mail (electronic mail) is a method of exchanging messages between people using electronic devices, facilitating communication over the internet or other computer networks.

Corporate Law

The body of law that governs the rights, relations, and conduct of persons, companies, organizations, and businesses.

Formation

The act or process of forming or creating something, often used in legal and business contexts to refer to the establishment of companies or legal agreements.