Shamrock Corporation Has Two Classes of Common Stock Outstanding

question 14

Essay

Shamrock Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A has one vote per share. Class B is nonvoting. Can Shamrock Corporation make an S corporation election?

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Definitions:

Punitive Damages

Monetary compensation awarded in excess of actual damages to punish or deter a defendant from engaging in conduct considered outrageous or extremely wrongful.

Civil Rights Act

Landmark legislation in the United States aimed at ending discrimination based on race, color, religion, sex, or national origin, and promoting equal access to public spaces and employment.

NLRA

The National Labor Relations Act, legislation enacted by the U.S. Congress in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private-sector labor and management practices.

Unfair Employer Practice

Any act by an employer that is unjust, discriminatory, or violates an employee's rights or labor laws.