Ali and Tom Are Both Shareholders in ABC Electrical Ltd

question 26

Multiple Choice

Ali and Tom are both shareholders in ABC Electrical Ltd. Ali has 51% of the shares and Tom has 49%. Ali is offered $100,000 to sell his shares to DEF Electrical Ltd. Tom is not offered anything for his shares. Does Tom have any rights?

• A) Tom may have statutory rights under the derivative action.
• B) Tom may have contractual rights under a shareholders' agreement.
• C) Tom may have statutory rights under the oppression remedy.
• D) Tom may have contractual rights under a shareholders' agreement and statutory rights under the oppression remedy.
• E) Tom may have contractual rights under a shareholders' agreement and statutory rights under the derivative action.

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Definitions:

NAALC

The North American Agreement on Labor Cooperation, an agreement between the USA, Canada, and Mexico to promote labor principles and enforce labor laws.

Cross-border Cooperation

Collaborative efforts and partnerships that occur across national boundaries, typically involving governments, organizations, or companies to achieve common goals.

European Works Council

An institution resulting from EU legislation that represents employees in multinational companies, focusing on informing and consulting them on transnational matters affecting their employment.

Transnational

Extending or operating across national boundaries, often used to describe companies, organizations, or activities that are not confined to a single country.