Question

Natural Corporation often fails to file the annual reports required by law. They also have failed to conduct annual shareholders meeting and their bylaws have been out of date and not followed for about four years. What could be the result of this malfeasance

Answer 1

Answer: The shareholders could lose their investments.

Explanation:

The above scenario given in the question will lead to shareholders losing their investments. This is because the shareholders are not carried along with regards to happening in the company.

Also, the company is not filing the annual reports required by law and they also have failed to conduct annual shareholders meeting and their bylaws have been out of date and not followed for about four years. Also, their stock prices can be discounted due to improper practices.