Question

According to the Revised Model Business Corporation Act (RMBCA), what establishes a quorum to hold a meeting of the shareholders?

A) a majority of the outstanding shares
B) a majority of the unissued shares
C) a majority of the treasury shares
D) a majority of the liquidated shares"

Answer 1

According to the Revised Model Business Corporation Act (RMBCA), a quorum to hold a meeting of shareholders is established by a majority of the outstanding shares. So, the correct answer is option A.

Step-by-step explanation:

In the Revised Model Business Corporation Act (RMBCA), a quorum to hold a meeting of shareholders is established by a majority of the outstanding shares. This means that the total number of outstanding shares must be present for a meeting to take place. For example, if there are 100,000 outstanding shares, a majority would be 50,001 or more shares. So, the correct answer is option A.