Ontario Barrister and Solicitor Practice Exam

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.