Protective rights include:
A) the right of a party holding a non-controlling interest in an investee to approve capital expenditure greater than that required in the ordinary course of business, or to approve the issue of equity or debt instruments.
B) the right of a lender to seize the assets of a borrower if the borrower fails to meet specified loan repayment conditions.
C) a lender's right to restrict a borrower from undertaking activities that could significantly change the credit risk of the borrower to the detriment of the lender.
D) all of the options are correct.

Question

Quizplus · Accepted Answer

Protective rights include all of the options listed. They are designed to protect the interests of investors or lenders and help mitigate risk.

Protective Rights Include