Which one of the following rights is never directly granted to all shareholders of a publicly held corporation?
A) Electing the board of directors
B) Receiving a distribution of company profits
C) Voting either for or against a proposed merger or acquisition
D) Determining the amount of the dividend to be paid per share
E) Having first chance to purchase any new equity shares that may be offered

Question

Quizplus · Accepted Answer

Determining the amount of the dividend to be paid per share is a decision made by the board of directors, not directly by the shareholders. Shareholders do have input into the decision by electing board members who they believe will make favorable dividend decisions, but they do not have the direct right to determine the exact amount of the dividend per share.

Which One of the Following Rights Is Never Directly Granted