Use This Fact Situation to Answer the Related Questions That
Use this fact situation to answer the related questions that follow. A and B are the shareholders of a private Ontario company and each holds 50 percent of the issued common shares.There is no shareholder agreement.At a general meeting,A and B,who have had a falling out,cannot agree on anything,from the business of the company in the next year to the election of the directors and appointment of the officers.
In this situation,
A)B must sell his shares to A.
B)A must sell his shares to B.
C)the company is effectively locked or deadlocked as to its operation.
D)the company will simply continue as it had before the meeting.
E)they will go to court and have the court decide the matter.
Use the fact situation in Q13 to answer the related question that follows. Assume that A and B have a unanimous shareholder agreement,which provides that for the time being the accountant of the corporation shall have the deciding vote in the event of a deadlock between the shareholders.If the accountant votes with A against B,
A)B is bound by the vote.
B)B can bring a derivative action.
C)B can use the oppression remedy.
D)B can move to wind up the company.
E)B must sell his shares to A.
Use the fact situation in Q13 to answer the related question that follows. Assume that A and B have a unanimous shareholder agreement,which provides that at any time,a shareholder can serve a notice on the other shareholder to buy the other's shares for fair market value.If A and B could not resolve their impasse,then
A)B could serve this notice on A.
B)A could serve this notice on B.
C)if B served this notice on A first,A would have to sell his shares in the company to B at fair market value,
D)if A served the notice on B first,B would have to sell his shares in the company to A for fair market value.
E)all of the above
The CEO of a corporation is
A)chosen from the board of directors.
B)appointed or hired by the board of directors.
C)hired by the president.
D)in charge of the board meetings.
E)elected by the shareholders.