The RMBCA provides that shareholders:

Question

Quizplus · Accepted Answer

The Revised Model Business Corporation Act (RMBCA) provides that shareholders have no preemptive rights unless the articles of incorporation specifically provide for such rights. This means that the default position is that shareholders do not have preemptive rights unless stated otherwise in the articles of incorporation. Option A correctly reflects this principle. Option B is incorrect as it suggests that shareholders have preemptive rights regardless of the articles of incorporation, which is not the case under the RMBCA. Option C is incorrect as it suggests that shareholders cannot have preemptive rights, which is also not true as such rights can be provided for in the articles of incorporation. Option D is incorrect as it refers to preemptive rights with respect to the transfer of a block of stock as consideration, which is not the same as preemptive rights in general.

The RMBCA Provides That Shareholders