Fill in the Blank (Select Correct Answer)

The purchase of shares of stock in a corporation make that person an(officer, shareholder, director) of that corporation. Typcially, shareholders have (responsibility, no responsibility) for the daily management of the corporation. Shareholders are (not entitled, entitled) to participate in a shareholders meeting, which typically must occur at least (weekly, annually, monthly).

The date upon which stock owernship is recorded for voting rights purposes is known as a (voting date, record date, rights date). Any date can be selected as long as it is no more than (fifty, seventy, twenty) days before the shareholder meeting. Brenda purchased Mike's shares on (July 1, July 15, June 1), which is fifteen days (before, after) the record date. On the record date, (Brenda, Mike) owned the shares. Therefore, Brenda (does have voting rights, does not have voting rights) and Mike (does not have voting rights, does have voting rights) from the 100 shares of common stock sold by Mike to Brenda on June 15.

In order to conduct shareholder meetins and vote, a corporation must have at least (one, two, three) classes of stock with voting rights. Owners of common stock (usually, rarely, never) have voting rights. Owners of preferred stock (rarely, usually, always), have voting rights. Therefore, it is (unlikely, likely) that Brenda can vote based on their ownership of shares of preferred stock.

A proxy is a representative of a (shareholder, officer, director) who is liable to (vote, sell shares, buy shares) on the shareholder's behalf at a shareholder meeting. Proxy agreements are generally valid for (eleven months, twelve months, thirteen months). At the time of the shareholder meeting, Francescas's proxy agreement was (fourteen months, thirteen months, twelve months) old. Therefore, Francesca's proxy agreement with her representative (expired, did not expire), and her representative (may not, may) vote on Franscesca's behalf.

What if the Facts were Different

Assume that Brenda purchased Mike's 100 shares of stock and Fransesca signed a new proxy agreement on May 15, 2020. Brenda's purchase of stock on May 15, 2020, is (after, before) the record date. On the record date, (Mike, Brenda) is the owner of the 100 shares and (may not, may) vote based on ownership of the 100 shares at the shareholder meeting. If Francesca signed a proxy agreement on May 15, 2020, it is (more than, less than) eleven months old at the time of the shareholder meeting. Therefore, Francesca's representative (does not, does) have the power to vote on Francesca's behalf.
Transcribed Image Text:On July 1, 2020, the shareholders of Xolan, Inc., convened for their annual shareholders meeting. The record date for the meeting was June 1, 2020. During the meeting a debate arose about who was eligible to vote. Mike tried to vote at the meeting, but Brenda claimed that she, and not Mike, was able to vote at the meeting because she purchased all of Mike's 100 shares of voting common stock on June 15, 2020. Furthermore, Brenda claims she can vote based on her ownership of preferred stock in Xolan. Finally, Brenda argued that Francesca, who signed a proxy agreement dated May 1, 2019 to have someone vote on her behalf, cannot vote through that representative because the proxy agreement had expired. Is Brenda correct?

Question

Fill in the Blank (Select Correct Answer)

The purchase of shares of stock in a corporation make that person an(officer, shareholder, director) of that corporation. Typcially, shareholders have (responsibility, no responsibility) for the daily management of the corporation. Shareholders are (not entitled, entitled) to participate in a shareholders meeting, which typically must occur at least (weekly, annually, monthly).

The date upon which stock owernship is recorded for voting rights purposes is known as a (voting date, record date, rights date). Any date can be selected as long as it is no more than (fifty, seventy, twenty) days before the shareholder meeting. Brenda purchased Mike's shares on (July 1, July 15, June 1), which is fifteen days (before, after) the record date. On the record date, (Brenda, Mike) owned the shares. Therefore, Brenda (does have voting rights, does not have voting rights) and Mike (does not have voting rights, does have voting rights) from the 100 shares of common stock sold by Mike to Brenda on June 15.

In order to conduct shareholder meetins and vote, a corporation must have at least (one, two, three) classes of stock with voting rights. Owners of common stock (usually, rarely, never) have voting rights. Owners of preferred stock (rarely, usually, always), have voting rights. Therefore, it is (unlikely, likely) that Brenda can vote based on their ownership of shares of preferred stock.

A proxy is a representative of a (shareholder, officer, director) who is liable to (vote, sell shares, buy shares) on the shareholder's behalf at a shareholder meeting. Proxy agreements are generally valid for (eleven months, twelve months, thirteen months). At the time of the shareholder meeting, Francescas's proxy agreement was (fourteen months, thirteen months, twelve months) old. Therefore, Francesca's proxy agreement with her representative (expired, did not expire), and her representative (may not, may) vote on Franscesca's behalf.

What if the Facts were Different

Assume that Brenda purchased Mike's 100 shares of stock and Fransesca signed a new proxy agreement on May 15, 2020. Brenda's purchase of stock on May 15, 2020, is (after, before) the record date. On the record date, (Mike, Brenda) is the owner of the 100 shares and (may not, may) vote based on ownership of the 100 shares at the shareholder meeting. If Francesca signed a proxy agreement on May 15, 2020, it is (more than, less than) eleven months old at the time of the shareholder meeting. Therefore, Francesca's representative (does not, does) have the power to vote on Francesca's behalf.

On July 1, 2020, the shareholders of Xolan, Inc., convened for their annual shareholders
meeting. The record date for the meeting was June 1, 2020. During the meeting a debate
arose about who was eligible to vote. Mike tried to vote at the meeting, but Brenda claimed
that she, and not Mike, was able to vote at the meeting because she purchased all of Mike's
100 shares of voting common stock on June 15, 2020. Furthermore, Brenda claims she can
vote based on her ownership of preferred stock in Xolan. Finally, Brenda argued that
Francesca, who signed a proxy agreement dated May 1, 2019 to have someone vote on her
behalf, cannot vote through that representative because the proxy agreement had expired. Is
Brenda correct?

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