Under the Model Act,who has the right to call a special meeting of the shareholders to vote on an emergency issue that cannot wait until the next annual meeting?
A)The board of directors and shareholders who own at least 10 percent of a company's stock
B)Any group of shareholders that is at least 25 in number and holds 25 percent of a company's stock
C)The board of directors and the CEO
D)Only the board of directors

Question

Quizplus · Accepted Answer

According to the Model Act, both the board of directors and shareholders who own at least 10 percent of a company's stock have the right to call a special meeting of the shareholders to vote on an emergency issue that cannot wait until the next annual meeting. Therefore, option A is the correct answer. Option B is incorrect because the number of shareholders required is incorrect, and option C and D are incorrect because the CEO alone or the board of directors alone does not have the right to call a special meeting of shareholders.

Under the Model Act,who Has the Right to Call a Special