Question

S1: In case of shares owned in common by two or more stockholders, the consent of either is enough to vote the same

S2: The pledgee or mortgagee shall have the right to vote the shares unless stipulated otherwise
A. Both are false
B. Both are true
C. Only the first is true
D. Only the first is false

Answer 1

In case of shares owned in common by multiple stockholders, the consent of either is enough to vote the same. The pledgee or mortgagee does not have the right to vote the shares unless stipulated otherwise.

Step-by-step explanation:

The first statement, S1, is true: in case of shares owned in common by multiple stockholders, the consent of either is enough to vote the same. This means that if two or more stockholders jointly own shares in a company, any one of them can vote on behalf of all the shares owned in common. This is a common practice in companies with multiple shareholders.

The second statement, S2, is false: the pledgee or mortgagee does not have the right to vote the shares unless stipulated otherwise. When shares are pledged or mortgaged, the ownership of the shares typically remains with the original shareholder. Therefore, the right to vote the shares also remains with the original shareholder unless there is a specific agreement or stipulation stating otherwise.