Which of the following represents one of the basic rights of shareholders?
A)Shareholders may authorise a business contract on behalf of the company.
B)Shareholders can maintain their proportionate ownership if the company issues new shares.
C)Shareholders may sell their shares back to the company if they wish.
D)Shareholders may determine at what price the company issues shares.

Question

Quizplus · Accepted Answer

Shareholders have the right to maintain their proportionate ownership if the company issues new shares. This means that if a company decides to issue new shares, existing shareholders have the right to purchase enough shares to maintain their percentage ownership in the company. This is known as pre-emption rights.

Which of the Following Represents One of the Basic Rights