Ontario Barrister and Solicitor Practice Exam 2025 - Free Barrister and Solicitor Practice Questions and Study Guide

Question: 1 / 400

In a company where there are two shareholders each with 50% of the shares, what is the minimum number of directors required?

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With two shareholders each holding 50% of the shares, both shareholders have equal control and authority in the company. Assigning 1 director ensures that each shareholder has an equal voice in decision making processes. Having 2 or more directors would give one shareholder or a group of shareholders a majority of votes, potentially causing conflicts of interest and unequal distribution of power. Having 3 or 4 directors would also not be necessary as the decisions can still be made equally and effectively with only 1 director. Therefore, A is the most suitable answer.

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