Multiply Choice
1. The president of R. Hoe & Co., Inc., refused to call a special meeting of the shareholders although 55 percent of them requested it. One purpose of the meeting was to demand that the former president be reinstated. Do shareholders have the right to make these two requests?
(a) Yes to both.
(b) No to both.
(c) The shareholders have the right to call a meeting, but not to reinstate the president.
(d) The shareholders have the right to reinstate the president, but not to call a meeting.

2. Under SOX and Dodd-Frank:
(a) Companies are prohibited from making personal loans to directors and officers.
(b) If a company restates its earnings, the five top executives must reimburse the company for any income they have received during that period.
(c) All directors must be independent.
(d) Shareholders have the right to strike down golden parachutes.

3. A company is allowed to hold its annual meeting online:
(a) If a majority of its shareholders approve
(b) If it also hold a live meeting for shareholders who want to attend in person
(c) If it simulcasts a video of the meeting
(d) Any way it wants, as long as shareholders are notified

4. To be elected to a board of a publicly traded company, a candidate must:
(a) Receive a majority of the votes cast
(b) Receive a majority vote of the shares outstanding
(c) Receive a plurality of the votes cast
(d) Receive a plurality of the shares outstanding

5. If directors and officers cause harm to their company:
(a) Shareholders have the right to file suit against them and recover damages.
(b) Shareholders have the right to file suit against them and recover damages only if the board permits the suit.
(c) Shareholders have the right to file suit against them and recover damages only if the board permits the suit or a court deems the demand futile.
(d) Shareholders do not have the right to file suit against them.