Which of the Following Attracts the Dissent Procedure, Which Can

question 109

Multiple Choice

Which of the following attracts the dissent procedure, which can result in the corporation being forced to buy the shares of a shareholder at market value?

• A) When the directors have hidden behind the corporate structure to do a wrong sufficiently serious that the courts would have lifted the corporate veil.
• B) If the directors of a non-reporting corporation fail to allot new shares proportionately to the members.
• C) When the directors of the corporation fail to enforce a right, duty, or obligation owed to the corporation that could be enforced by the corporation.
• D) When the directors conduct the affairs of the corporation in a manner oppressive to one or more of the members.
• E) When major changes are made in the best interests of the corporation that will adversely affect one group of shareholders.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, often analyzed to assess the financial health of an organization.

Annual Return

The percentage of profit or loss on an investment over a one-year period.

Payback Period

The duration of time it takes to recoup the initial investment cost of a project or investment, through cash inflows or savings.

Net Cash Flows

A rephrasing of Net Cash Flow, it represents the net change in a company's cash and cash equivalents by subtracting cash outflows from cash inflows within a financial period.