Business Law QUIZ

What is a Joint Stock Company?

• A company in which the shareholders participate with contributions in the core capital

• A company owned entirely by the government

• A small partnership formed for a specific project

• A nonprofit association of independent investors

Joint Stock Company may have MORE than one shareholder

• True

• False

What are the Specifics of Joint Stock Company?    

• Limited to 10 shareholders; shares cannot be transferred

• Shareholders must be related by family or marriage

• Large number of shareholders; transfer of shares has no effect on the company's existence

• Only founders can own shares and must approve all transfers

According to the MAK Company Law, “Each share that gives voting right, gives a right to ONE vote in the Shareholders Assembly Meeting.” Therefore:

• it is prohibited to issue same type shares, which for identical nominal amount give different voting rights

• it is allowed to issue same type shares, which for identical nominal amount give different voting rights

• it is prohibited to issue same type shares, which for identical nominal amount give same voting rights

When are shareholders not entitled to participate in the profit?

• When shareholders own less than 10% of the company

• When profit is excluded from distribution based on an Assembly of Shareholders decision

• When the board of directors personally keeps all profits

• When the company has over 100 shareholders

Members of the Management Body and Supervisory Board of a Joint Stock Company MAY PARTICIPATE in the operation of the Assembly of Shareholders Meeting, WITHOUT right to vote, UNLESS THEY ARE SHAREHOLDERS.

• True

• False

The Assembly of Shareholders Meeting of a Joint Stock Company may be called by:

• an Invitation only

• Public Notice only

• both by an Invitation and Public Notice

• an Invitation or Public Notice, or both by Invitation and Public Notice

What should be done at the beginning of a Shareholders’ Assembly meeting?

• Elect a chairman, appoint someone to take minutes, and confirm the quorum

• Approve the company’s annual report and vote on dividends

• Review marketing plans and elect new employees

• Dissolve the board of directors and initiate legal audits

What are the bodies of a Joint Stock Company?

• Top management, middle management, and operations

• Board of Trustees, Marketing Division, and Shareholder Committee

• Legal Department, Financial Advisors, and External Auditors

• Owners, Suppliers, and Customers

The members of the Management Board JOINTLY manage the company, the day-to-day activities of the company and act on behalf of the company, within the scope of operations of the company.

• True

• False