Chemical Mines Has 5,000 Shareholders and Is Preparing to Elect

question 28

Multiple Choice

Chemical Mines has 5,000 shareholders and is preparing to elect two new board members. You do not own enough shares to personally control the elections but are determined to oust the current leadership.Likewise,no other single shareholder owns sufficient shares to personally control the outcome of the election.Which one of the following is the most likely outcome of this situation given that some shareholders are happy with the existing management?

• A)negotiated settlement where each side is granted control over one of the open seats
• B)protracted legal battle over control of the board of directors
• C)arbitrated settlement where the arbitrator determines who will be elected to the board
• D)control of the board decided without your influence
• E)proxy fight for control of the board

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Definitions:

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.

Equivalent Replacement

The act or process of replacing an asset with another that performs the same function or yields the same output.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Overdue

Refers to a payment or obligation that has not been met by its specified due date.