BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A group of shareholders who make a contract to vote in a certain way on a certain issue have made a
A
pooling agreement
B
proxy
C
shareholder proposal
D
voting trust
Explanation: 

Detailed explanation-1: -In a pooling agreement, each shareholder retains sole ownership of shares binding him only to vote for a specific person or in a certain way. These agreements are enforceable because the right to vote is a proprietary right.

Detailed explanation-2: -A pooling agreement is a type of contract in which shareholders of a corporation create a voting trust by pooling their voting rights and transferring them to a trustee. This is also called a voting agreement or shareholder-control agreement since it is used to control the affairs of the corporation.

Detailed explanation-3: -A shareholder agrees to vote its voting shares generally or in favour of a specific proposal and against any contrary proposal. Voting agreements are commonly used in business combination transactions to assure the purchaser that significant shareholders will vote to approve the subject transaction.

Detailed explanation-4: -Preference shareholders don’t have voting rights, whereas equity shares have voting rights. Q. Equity shareholders have a right to .

Detailed explanation-5: -Voting shares are shares of a company that entitle the shareholder to vote on key issues of the company. It is generally one vote per share. The shares represent an ownership interest in a corporation.

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