Question

The directors and officers of Sports Color, Inc., vote to refuse to declare a dividend. The shareholders can:________

a. overrule the directors and vote to declare a dividend themselves.
b. file an action to require the directors to declare a dividend.
c. demand that a court declare a dividend.

Answer 1

Answer is B. File an action to require the directors to declare a dividend.

Step-by-step explanation:

A kind of money paid regularly usually yearly by an organization or company to its shareholders from the profits the company or organization made or from its revenue is known as the dividend.

A company that decided not to pay dividend from its profits can reinvest it into a new project.