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Ali and Tom Are Both Shareholders in ABC Electrical Ltd

Question 3

Multiple Choice

Ali and Tom are both shareholders in ABC Electrical Ltd. Ali has 51% of the shares and Tom has 49%. Ali is offered $100,000 to sell his shares to DEF Electrical Ltd. Tom is not offered anything for his shares. Does Tom have any rights?


A) Tom may have statutory rights under the derivative action.
B) Tom may have contractual rights under a shareholders' agreement.
C) Tom may have statutory rights under the oppression remedy.
D) Tom may have contractual rights under a shareholders' agreement and statutory rights under the oppression remedy.
E) Tom may have contractual rights under a shareholders' agreement and statutory rights under the derivative action.

Correct Answer:

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