Three Classmates Incorporated About a Week After Graduation

question 114

Multiple Choice

Three classmates incorporated about a week after graduation. The authorized capital was 500,000 common no-par-value shares. Each took one share and each was a director. If the directors decide to issue more shares from the treasury to raise more capital, which of the following provisions ensures that they keep their proportionate holdings?

• A) Pre-emptive right provision
• B) Indoor-management rule
• C) Derivative-action provision
• D) Dissent procedure
• E) Relief-from-oppression provision

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Definitions:

Modular Organization

An organizational structure where components are divided into modules, each designed to carry out particular parts of the overall function, allowing for flexibility and scalability.

Layers

Refers to the different levels or strata within organizations, systems, or structures.

Teams

Groups of individuals working together towards a common goal, characterized by cooperative effort, shared responsibility, and collective accountability.

Modular Organizations

A flexible organizational structure where components or units can be easily fitted together or recombined to adapt to different tasks or environments.