Three Classmates Incorporated About a Week After Graduation

question 125

Multiple Choice

Three classmates incorporated about a week after graduation.The authorized capital was 500 000 common no-par-value shares.Each took one share; each was a director.If the directors decide to issue more shares from the treasury to raise more capital,which of the following provisions ensures that they keep their proportionate holdings?

• A) pre-emptive right provision
• B) indoor-management rule
• C) derivative-action provision
• D) dissent procedure
• E) relief-from-oppression provision

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Definitions:

Fevers

An increase in body temperature above the normal range, often a sign of infection or illness, reflecting the body's immune response.

Fahrenheit

A temperature scale on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Freezing

The process of turning a liquid into a solid by lowering its temperature below its freezing point.

Fahrenheit

A temperature scale in which water freezes at 32 degrees and boils at 212 degrees under standard atmospheric pressure, commonly used in the United States.