In the Event That a Shareholder Resolution Is Passed by a Majority

question 12

Multiple Choice

In the event that a shareholder resolution is passed by a majority at a company's annual general meeting (AGM) , in most cases the company is obliged to ______.

• A)take action immediately
• B)create a plan for implementation of the idea and present it to shareholders
• C)consider the proposal at its next board meeting
• D)do nothing

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Definitions:

Risk-Free Rate

The expected return on an investment that carries no risk, commonly exemplified by the interest rate on government bonds.

Call Option

An option contract that grants the holder the right to buy an underlying asset at a predetermined price before the option expires, without the obligation to do so.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis without regard to its market value.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.