The shareholders that are eligible to vote for the board of directors of a company are:Question 6Select one:a.all shareholders holding more than 1,000 shares.b.all shareholders who attend the annual general meeting.c.all shareholders holding voting shares.d.all preference shareholders.
Question
The shareholders that are eligible to vote for the board of directors of a company are:Question 6Select one:a.all shareholders holding more than 1,000 shares.b.all shareholders who attend the annual general meeting.c.all shareholders holding voting shares.d.all preference shareholders.
Solution 1
The correct answer is c. all shareholders holding voting shares.
Here's why:
In most companies, the right to vote for the board of directors is given to all shareholders who hold voting shares, regardless of the number of shares they own. This means that even if a shareholder owns less than 1,000 shares, they can still vote if their shares are voting shares.
Option a is incorrect because the number of shares a shareholder owns does not necessarily determine their voting rights.
Option b is also incorrect because not all shareholders who attend the annual general meeting may have the right to vote. Their voting rights depend on the type of shares they own.
Option d is incorrect because preference shareholders usually do not have voting rights. They are given preference in terms of dividend payments, but they usually do not have the right to vote on company matters.
Therefore, the correct answer is c. all shareholders holding voting shares.
Solution 2
The correct answer is c. all shareholders holding voting shares.
Here's why:
In most companies, the right to vote for the board of directors is given to all shareholders who hold voting shares, regardless of the number of shares they own. This means that even if a shareholder owns less than 1,000 shares, they can still vote if their shares are voting shares.
Option a is incorrect because the number of shares a shareholder owns does not necessarily determine their voting rights.
Option b is also incorrect because not all shareholders who attend the annual general meeting may have the right to vote. Their voting rights depend on the type of shares they own.
Option d is incorrect because preference shareholders usually do not have voting rights. They are given preference in terms of dividend payments, but they usually do not have the right to vote on company matters.
Therefore, the correct answer is c. all shareholders holding voting shares.
Similar Questions
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The following which is not a key factor in the effectiveness of a board of directors is:Group of answer choicessubjectivity.competence.diversity.independence.
The directors of a listed company must:
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