Three Classmates Incorporated About a Week After Graduation

question 100

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) Preemptive right provision
• B) Relief-from-oppression provision
• C) Derivative-action provision
• D) Indoor-management rule
• E) Dissent procedure

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