Asked by Mollie Weber on Jun 19, 2024
Verified
As amended in 2002, the Revised Act permits the creation of classes or series of shares with terms that vary among holders of the same class or series so long as the variations are expressly set forth in the articles of incorporation.
Revised Act
is an updated version of a legislative act that incorporates amendments or corrections to the original text, aiming to clarify or improve the law.
Articles of Incorporation
A document filed with a state governmental body to legally document the creation of a corporation, detailing basic information such as its name, purpose, and structure.
- Evaluate the influence and legal prerequisites of corporate events such as dividend distributions, issuing new shares, and share repurchases on the management of companies.
Verified Answer
WW
William WalterJun 23, 2024
Final Answer :
True
Explanation :
The Revised Act allows for the creation of classes or series of shares with varying terms among holders within the same class or series, provided these variations are explicitly stated in the articles of incorporation. This flexibility supports the customization of rights, preferences, and limitations to meet specific business needs or investor requirements.
Learning Objectives
- Evaluate the influence and legal prerequisites of corporate events such as dividend distributions, issuing new shares, and share repurchases on the management of companies.