Ontario Barrister and Solicitor Practice Exam

Are shareholders permitted to submit proposals designed to redress a personal grievance at a special meeting?

1. Yes, any proposal can be submitted.

2. No, shareholders cannot submit such proposals.

3. Only if it benefits the majority.

4. Only with prior approval from the board.

The correct answer is: No, shareholders cannot submit such proposals.

In this scenario, the correct answer is B. Shareholders are not allowed to submit proposals based on personal grievances at a special meeting. This is because special meetings are typically held to discuss and vote on important matters for the company, not personal issues of a single shareholder. Options A and C are incorrect because they suggest that any proposal can be submitted or that it needs to benefit the majority, which may not always be the case for special meetings. Option D is incorrect because it implies that shareholders can submit personal grievance proposals with prior approval from the board, which is not typically the case. It is important for shareholders to understand the proper protocol for submitting proposals at different types of meetings to ensure that meetings are efficient and productive for the company.