Zeron Corporation stock may be summarized as follows: 100,000 authorized
90,000 issued
75,000 outstanding
15,000 treasury stock
How many shares or proxies will have to be present for a quorum (assuming no special provision and that the Revised Act is not in effect)?
A) 45,001
B) 37,501
C) 52,501
D) 50,001

Question

Quizplus · Accepted Answer

Under typical corporate governance rules, a quorum for shareholder meetings is based on the number of shares outstanding, not the total authorized or issued shares. If no special provision is in effect, the standard requirement is usually a majority of the outstanding shares. With 75,000 shares outstanding, a majority would be half plus one, or 37,501 shares. Treasury stock, being shares that the corporation holds of its own stock, does not vote and is not counted in the quorum calculation.

Zeron Corporation Stock May Be Summarized as Follows: 100,000 Authorized