Question

Which of the following statements is false?

a. for the rules of association, shares of a specified class are not considered in assessing whether the 25% cross-ownership condition is met.
b. for the rules of association, options and rights to acquire additional voting shares are not considered in assessing whether an individual controls a corporation.
c. for the rules of association, a person who owns shares in more than one corporation is deemed to be related to itself, himself, or herself.
d. for the rules of association, both parents of a minor child are deemed to own the shares of his or her minor child.

Answer 1

The false statement is: For the rules of association, shares of a specified class are not considered in assessing whether the 25% cross-ownership condition is met.

Step-by-step explanation:

The false statement is: a. For the rules of association, shares of a specified class are not considered in assessing whether the 25% cross-ownership condition is met.

In assessing the 25% cross-ownership condition, shares of a specified class are indeed considered. The rules of association also take into account options and rights to acquire additional voting shares, as stated in statement b. Additionally, statement c highlights that a person who owns shares in more than one corporation is deemed to be related to themselves, and statement d acknowledges that both parents of a minor child are deemed to own the shares of the child.