Commercial Law, 2011 Bar — Question 66

MULTIPLE CHOICE

The rule is that no stock dividend shall be issued without the approval of stockholders representing at least 2/3 of the outstanding capital stock at a regular or special meeting called for the purpose. As to other forms of dividends: A) a mere majority of the entire Board of Directors applies. B) a mere majority of the quorum of the Board of Directors applies. C) a mere majority of the votes of stockholders representing the outstanding capital stock applies. D) the same rule of 2/3 votes applies.

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