Question

If the rights of a particular class of share holders is to be changed then the company should call __________.

• A. shareholders meeting
• B. directors
• C. class meetings
• D. preference shareholder meeting

Answer 1

Answer: (C)

class meetings

A company is an association of several persons. Decisions are made according to the view of the majority. Class meetings are meetings which are held by holders of a particular class of shares, e.g., preference shareholders. Such meetings are normally called when it is proposed to vary the rights of that particular class of shares.