Under the Revised Act, if the charter simply states that the corporation elects to have preemptive rights, the shareholders have no preemptive rights with respect to:
A) shares issued within six months of incorporation.
B) shares issued as compensation to directors, officers, and employees.
C) the corporation's unissued shares.
D) Shares issued as compensation to directors, officers, and also employees and shares issued within six months of incorporation.

Question

Under the Revised Act, if the charter simply states that the corporation elects to have preemptive rights, the shareholders have no preemptive rights with respect to:
A) shares issued within six months of incorporation.
B) shares issued as compensation to directors, officers, and employees.
C) the corporation's unissued shares.
D) Shares issued as compensation to directors, officers, and also employees and  shares issued within six months of incorporation.

Quizplus · Accepted Answer

Under the Revised Act, shareholders do not have preemptive rights for shares issued as compensation to directors, officers, and employees, or for shares issued within six months of incorporation, unless specifically stated otherwise in the charter.

Under the Revised Act, If the Charter Simply States That