The Revised Act explicitly requires a corporations's charter to authorize:
A) one or more classes of shares that together are entitled to receive the net assets of the corporation upon dissolution.
B) one or more classes of shares that have limited voting rights.
C) Both are correct.
D) nothing. The Revised Act only recommends, not requires, the charter contents.

Question

Quizplus · Accepted Answer

The Revised Act requires a corporation's charter to authorize one or more classes of shares that together are entitled to receive the net assets of the corporation upon dissolution. This ensures that upon the dissolution of the corporation, there is a clear directive on how the remaining assets are to be distributed among shareholders.

The Revised Act Explicitly Requires a Corporations's Charter to Authorize