Which of the Following Statements Is True Regarding the Corporations

question 31

Multiple Choice

Which of the following statements is true regarding the Corporations Act 2001 on takeovers?

• A)A market takeover announcement can only be undertaken if either the offeror or target is a member of the ASX.
• B)In a formal takeover,the target company must produce a Part A statement whilst the offeror must produce a Part B statement.
• C)A bidder in a partial takeover must specify at the outset the proportion of each shareholder's shares that the bidder will offer to buy.
• D)The acquisition of additional shares in a company is prohibited if it results in a shareholder being entitled to more than 20% of voting shares.

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Definitions:

Directors and Shareholders

Individuals or entities that hold decision-making power (directors) and those who own shares in a company (shareholders).

Plan Approval

The process in which an authoritative body reviews and approves a proposed plan or project.

Shares Exchange

The process where shares of stock are traded or exchanged between parties, typically on a stock exchange platform.

Companies Existence

Refers to the legal recognition and status of a corporation as an entity that is separate and distinct from its owners or shareholders.