Question

Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock. (You may ch mooosere than one answer.
a. Did not allow the stockholder to sell the stock to her brother.
b. Rejected the stockholder's request to be put in charge of its retail store.
c. When additional common stock was later issued, the company did not give the shareholder the preemptive right to protect her proportionate interest.
d. The company did not provide all stockholders with timely financial reports.
e. In liquidation, paid the common shareholder after all creditors were already paid.

Answer 1

Answer and Explanation:

The explanation is as follows;

a. In this, the corporation has violated the right to sell off the stock.

b. Here no rights of the shareholder would be violated as the stockholder do not have the interfere right

c. Here the right is violated with respect to the purchase their proportional common stock share prior made available to the public

d. Here also the right is violated for receiving the timely financial reports

e. Here no rights of the stockholder is  violated because the common stockholder is paid at the last when the creditors payment has been done