You Have Been Asked by Two Fellow Graduates to Join

question 149

Multiple Choice

You have been asked by two fellow graduates to join them in incorporating a closely held corporation that would commence a consulting business.One was in your class,so you know him quite well,but the other is graduating from a different school.You have been discussing the law to review the protection it gives you.Read each of the following statements separately and indicate which is true.

• A)If you have pre-emptive rights and the directors decide to issue a new allotment of shares,the corporation must offer you a portion of the new issue to allow you to keep your proportional share of the corporation.
• B)A shareholder's agreement allows shareholders and not officers to manage the corporation.
• C)As a shareholder,you will have the right to vote for the officers of the corporation.
• D)If you were voted out as a director by the others,who could show that it was in the best interest of the corporation,you could sell your shares to any interested buyer without interference from the other directors.
• E)If you each take one-third of the first allotment of the shares,you will necessarily be a minority shareholder,and have no voting rights in electing the directors of the corporation.

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Definitions:

Gallery of the King

A specific section or room within a museum, palace, or larger institution dedicated to showcasing works of art or historical objects associated with royalty.

Triforium

In a Gothic cathedral, the blind arcaded gallery below the clerestory; occasionally, the arcades are filled with stained glass.

Rounded Nave Arcade

Architectural feature common in Romanesque churches, consisting of a series of rounded arches supported by columns along the nave.

Guild Windows

Stained glass windows donated by medieval guilds to churches or cathedrals as a form of piety and to demonstrate their wealth and importance in society.