Under the RMBCA,if the charter states that "the corporation elects to have preemptive rights," shareholders have preemptive rights with respect to:

Question

Quizplus · Accepted Answer

Preemptive rights allow existing shareholders to maintain their proportional ownership in the corporation by having the right to purchase additional shares before they are offered to the general public. This right only applies to unissued shares, meaning shares that have not yet been issued by the corporation. Therefore, choice D is the correct answer. Choices A, B, and C are incorrect because the issuance of shares as compensation, within six months of incorporation, or for consideration other than money would not trigger preemptive rights for existing shareholders.

Under the RMBCA,if the Charter States That "The Corporation Elects