Under the MBCA, a quorum of shareholders at an annual meeting may be not less than what percentage of the shares entitled to vote?
A) 10
B) 33 1/3
C) 66
D) 50

Question

Quizplus · Accepted Answer

Under the Model Business Corporation Act (MBCA), a quorum for a shareholders' meeting is established if the holders of at least a majority (more than 50%) of the shares entitled to vote are present in person or by proxy, unless the corporation's articles of incorporation or bylaws specify a different percentage (which cannot be less than one-third of the voting shares). Therefore, 33 1/3% is the minimum percentage that can be set for a quorum, making option B correct.

Under the MBCA, a Quorum of Shareholders at an Annual