Catz Corporation has two majority shareholders and five minority shareholders.The five minority shareholders created a voting trust in November 2011 to control Catz through the concentration of shareholder voting power in the voting trustees.Under the Model Business Corporation Act (MBCA),this voting trust will be valid until:
A)September 2014.
B)October 2021.
C)September 2026.
D)October 2016.

Question

Quizplus · Accepted Answer

The Model Business Corporation Act (MBCA)limits the duration of voting trusts to 10 years,though all or part of the participating shareholders may agree to extend the term for another 10 years.So,unless the participating shareholders agree to extend the term,the voting trust created by the five minority shareholders of Catz will be valid until October 2021.

Catz Corporation Has Two Majority Shareholders and Five Minority Shareholders