Q.1
On which grounds did the shareholders file the action?
on the grounds of their rights as shareholders
on the grounds of a violation of the bylaws
on the grounds of an ongoing proxy fight
on the grounds of their lack of faith in the board of directors
Q.2
What does the writer identify as the issue in the case?
whether the annual shareholders' meeting determines the term of the board of directors
whether the election of the board of directors requires a quorum
whether the annual shareholders' meeting must be held a full year after the last one
whether the bylaws define the term 'full year'
Q.3
What does the writer say regarding earlier cases related to this one?
They provide for an analysis in favour of the shareholders.
They give the board of directors the freedom to run the company as they see fit.
They have merely provided an interpretation of the legislative intent.
They do not address the issue involved.
Q.4
What reason does the writer give for his conclusion?
It is dubious that the shareholders will prevail.
The facts of the case do not support judicial intervention.
A court of appeal will only look at the facts of the case.
The board of directors has a duty to act in good faith.
Q.5
Choose the best explanation for "on the grounds that"
in the area of
on the basis of the fact that
despite the fact that
Q.6
Choose the best explanation for "at the discretion of"
according to the decision of
through the tact of
due to the secrecy of
Q.7
Choose the best explanation for "the ensuing year"
the next year
the present year
the past year
Q.8
Choose the best explanation for "statutes give wide leeway"
statutes can easily be avoided
statutes allow considerable freedom
statutes restrict extensively
Q.9
Choose the best explanation for "alleging"
stating without proof
making reference to
proposing
Q.10
Choose the best explanation for "to act in good faith"
to act from a religious belief
to do something with honest intention
to plan for the future carefully