Why Are Shareholders Required to Hold a Meeting Within the First

question 32

Multiple Choice

Why are shareholders required to hold a meeting within the first 18 months of the date of incorporation?

• A) to authorize the issuance of shares and other securities by the directors
• B) to replace first directors with directors who have made banking arrangements
• C) to replace first directors with directors who will hold office until the annual meeting
• D) to authorize the appointment of officers to manage the operations of the corporation

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Definitions:

Note Payable

A written promissory note where the borrower agrees to pay back a specified sum of money to the lender on a certain date or on demand.