Question

Ophelia and Gertrude owned stock in Great Danes, Inc., a luxury dog-breeding company. Great Danes, Inc. is incorporated in and holds its shareholder meetings in Florida. Ophelia and Gertrude enter a written agreement to vote in a particular way at the upcoming shareholder meeting, but Ophelia is getting concerned that Gertrude will not vote according to the agreement. Ophelia comes to you for advice. You tell her that

Answers:
A. Written shareholders' agreements are not recognized in Florida.
B. Written shareholders' agreements are not enforceable in Florida.
C. Written shareholders' agreements are both allowable and enforceable in Florida.
D. Written shareholders' agreements are both allowable and enforceable in Florida, but only if filed with the corporation.

Answer 1

C. Written shareholders' agreements are both allowable and enforceable in Florida.

Step-by-step explanation:

Considering the situation above, option C is correct because it is a recognized practice that shareholders may choose to have a binding agreement that specifically determines the way or option in which they will vote based on their shares.

Hence, it is also believed and well known that agreements like this that are written and signed are considered both valid or legal and actually enforceable in Florida.