Ebo Corporation was incorporated under the Canada Business Corporations Act in 1991.It is a private corporation.It carries on a dress making business.Eben is the CEO and the sole director.He holds 60 percent of the shares.Four employees hold the remaining 40 percent,10 percent each.Eben has run the corporation as if there were no other shareholders.None of the employees has ever seen a financial statement,nor has there ever been a shareholders' meeting.The employees have received substantial dividends on their shares and do not want to leave the corporation or sell their shares.They do,however,want some better disclosure regarding the corporation's business.Which of the following statements does not describe these minority shareholders' rights?
A) They could seek leave to bring a derivative action on behalf of the corporation against Eben on the basis that his failure to send them annual financial statements and call annual meetings is a breach of his fiduciary duty to act in the best interests of the corporation and seek injunctive relief.
B) They could apply to the court for an order directing Eben to comply with the Canada Business Corporations Act by distributing financial statements and holding shareholder meetings and to cease conducting the affairs of the corporation in a manner oppressive to the shareholders.
C) They could requisition a shareholder meeting to discuss the problem.
D) They could apply to the court for relief on the basis that Eben is oppressing or unfairly disregarding their interests as minority shareholders.
E) They could sell their shares publically on the stock exchange.
Correct Answer:
Verified
Q21: What best describes the circumstances in which
Q30: Which of the following statements is TRUE?
Q33: Which if the following statements is FALSE?
A)A
Q34: Aldo is the vice-president of finance for
Q35: Yasir is a director and the operations
Q37: Which of the following statements is TRUE?
Q38: Which of the following statements best describes
Q41: Gargantua Inc is a very large company
Q42: Roxanne is a minority shareholder in Sumner
Q44: A derivative action
A)is a type of crime
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents