A stockholder dissatisfied with the management of the corporation done by the Board of Directors surrenders his certificate of stocks and demands the return of the subscription price paid by him. Can he rightfully do this? Explain.
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A stockholder dissatisfied with the management of the corporation done by the Board of Directors surrenders his certificate of stocks and demands the return of the subscription price paid by him. Can he rightfully do this? Explain.
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- If a company’s constitution does not contain rules governing the forfeiture of shares, then the company: Select one: A. can register the shares in the name of another shareholder but cannot receive payment from that shareholder. B. may forfeit shares and reissue them at a later date. C. may forfeit shares but not reissue them. D. cannot forfeit shares.Which of the following is not a right of an ordinary shareholder? Select one: O a. None of the answers are correct. O b. Right to receive dividends. O C Share in assets at liquidation. Od. Right to record cash transactions. O e. Right to vote and elect the board of directors.Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.
- When a company requests a further payment from shareholders of the unpaid amounts on their shares, it: Select one: A. makes a call on the shares. B. converts the shares into debentures. C. forfeits the shares. D. makes a further allotment of those shares.Write T if the statement is correct and F if the statement is incorrect. On the space provided, briefly explain Death of a shareholder will dissolve the corporation.A written authorization given by a shareholder to someone else to represent him or her and to vote his or her shares at the stockholders' meeting is called a coupon. a proxy. an indenture. none of these.
- The dividend is not a legal liability until the board of directors has declared it. true or false. Explain why?Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Corporations are often subject to fewer regulations than partnerships. Shareholders are not personally liable for corporate acts. It does not end with the death of an owner. The president and vice presidents choose the board of directors. Stockholders do not have the power to bind the corporation to contracts. Owners are personally liable for corporate debts. It has many of the same rights as an individual.Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. It has many of the same rights as an individual. The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. Stockholders are expected to hire and fire key executives. It does not end with the death of an owner. Corporate income that is distributed to shareholders is usually taxed twice. Corporations are often subject to fewer regulations than partnerships. The president and vice presidents choose the board of directors.
- After dissolution caused by the illegal acts, fraud, corruption and etc. of the directors, trustees, officers, or employees, what will happen to the innocent stockholders and employees? Are they going to receive something from the company's assets since they are not involved to that act?You are offered a job you know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant? While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder relative to any applicable statutes or laws?Direction: Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A corporation can be formed by mere agreement among shareholders. 2. Shareholders are not liable to corporate obligations in excess of their contribution. 3. Authority of the corporation to operate has to be granted by the state. 4. Death of a shareholder will dissolve the corporation. 5. Shares cannot be transferred without the consent of the other shareholders. 6. All incorporators are subscribers but a subscriber need not be an incorporator. 7. The ultimate control of the corporation rests with the board of directors. 8. Shareholders can transact business on behalf of the corporation. 9. All incorporators are shareholders but not all shareholders are incorporators. 10. In a corporation, minority shareholders are compliant to the wishes of the majority.