What Is a Shareholder Quorum

question 29

Multiple Choice

What is a shareholder quorum?

• A) It is the minimum number of shareholders needed to have a valid vote.
• B) It is a method whereby a shareholder elects a representative, commonly another individual or a written document, through which the shareholder casts his vote at the annual meeting.
• C) It is an agreement made in advance among shareholders to vote in a particular manner.
• D) It is the rights of shareholders to protect dilution of their percentage of share ownership.
• E) It is a lawsuit brought on behalf of the corporation by a shareholder when the directors refuse to act.

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Definitions:

Trade or Business

An activity undertaken by a person or entity for the purpose of earning profit from selling goods or services.

Capital Assets

Long-term property owned for investment or personal purposes, including stocks, bonds, real estate, and equipment.

IRC

The Internal Revenue Code, which is the comprehensive set of tax laws created by the Internal Revenue Service in the United States.

Personal or Investment Purposes

The intention behind acquiring or using property, either for personal enjoyment or to generate income or profit.