CHAPTER 16

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1. A preferred share is

the right of a shareholder to be paid arrears
a share or stock that has a preference in the distribution of dividends and the proceeds on dissolution
a shareholder's right to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issue
a share or stock that has a right to vote, to share in dividends, and to share in proceeds on dissolution
a person who acts for another in a meeting or a public body

2. A common share is

the right of a shareholder to be paid arrears
a share or stock that has a preference in the distribution of dividends and the proceeds on dissolution
a shareholder's right to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issue
a share or stock that has a right to vote, to share in dividends, and to share in proceeds on dissolution
a person who acts for another in a meeting or a public body

3. A proxy is

the right of a shareholder to be paid arrears
a share or stock that has a preference in the distribution of dividends and the proceeds on dissolution
a shareholder's right to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issue
a share or stock that has a right to vote, to share in dividends, and to share in proceeds on dissolution
a person who acts for another in a meeting or a public body

4. A cumulative dividend right is

the right of a shareholder to be paid arrears
a share or stock that has a preference in the distribution of dividends and the proceeds on dissolution
a shareholder's right to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issue
a share or stock that has a right to vote, to share in dividends, and to share in proceeds on dissolution
a person who acts for another in a meeting or a public body

5. A preemptive right is

the right of a shareholder to be paid arrears
a share or stock that has a preference in the distribution of dividends and the proceeds on dissolution
a shareholder's right to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issue
a share or stock that has a right to vote, to share in dividends, and to share in proceeds on dissolution
a person who acts for another in a meeting or a public body

6. The standard of skill required of corporate directors is

that amount of skill that a reasonably prudent person would exercise in comparable circumstances
that amount of skill that may reasonably be required from a person of his knowledge
that amount of skill that may reasonably be required from a person of his professional experience
that amount of skill that may reasonably be required from a person who holds his professional qualifications
that amount of skill that may reasonably be required from a person who does not receive a salary for his contributions

7. In the traditional approach taken by the courts, a director?s fiduciary duty includes

a duty to act in the best interests of the corporation as a whole, focused on the maximization of profit
a duty to demonstrate care and skill
a duty to act in the best interests of the individual shareholders
a duty to serve the interests of the community in general, including the protection of the environment
a duty to always act in a socially responsible manner

8. Provincial securities legislation in most provinces exposes corporate directors to personal liability for

anticompetitive behaviour
misrepresentations made in a prospectus
failure to maintain health and safety standards
failure to remit required taxes
failure to pay employee wages

9. The R. v. Bata case was the first Canadian decision regarding personal liability of directors for environmental offences committed by companies. It established the principle that

directors are never personally liable under environmental legislation
directors are always personally liable under environmental legislation
a director?s liability under environmental legislation is dependant on actual personal knowledge of the corporation?s infractions
a director?s liability under environmental legislation is not dependant on actual personal knowledge of the corporation?s infractions
evidence that instructions to solve the problem were given to staff members by the director is sufficient to eliminate a director?s liability

10. A corporate shareholder?s obligations to the corporation include

a duty of care and skill
a duty of utmost good faith
a duty to act in the best interests of the company
all of the above
none of the above