Ontario Barrister and Solicitor Practice Exam

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What does not fall under corporate arrangement according to the OBCA?

  1. A merger between companies

  2. An automatic dissent right to shareholders

  3. A consolidation of shares

  4. A division of business units

The correct answer is: An automatic dissent right to shareholders

A merger between companies, a consolidation of shares, and a division of business units all fall under corporate arrangements according to the OBCA. These are all actions that involve restructuring or combining different aspects of a corporation. However, an automatic dissent right to shareholders is not considered a corporate arrangement, as it is a legal right that allows shareholders to object to certain decisions made by the corporation. This option is incorrect because it is the only one that does not involve a direct change or alteration to the structure of the corporation.

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