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notka56 [123]
3 years ago
7

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City’s shareholders

agree in writing to operate without shareholders’ meetings. Under the Revised Model Business Corporation Act, this most likely warrants
no penalties or sanctions
severe penalities
Social Studies
1 answer:
frozen [14]3 years ago
3 0

Answer:

No penalties or sanctions

Explanation:

Bay City Merchant Corporation is not subject to any penalties or sanctions in this case because all of the shareholders have agreed in writing to operate without shareholder's meaning. In fact the revised Corporation Act can allow this to happen if certain conditions are met, which include this being a unanimous decision and stated in writing, and hence whether 4 of the shareholders are from the same family, it does not matter as long as the criteria are met.

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