Ontario Barrister and Solicitor Practice Exam

Is a corporation required to circulate all shareholder proposals received within the time frame?

1. Yes, it is always a requirement.

2. No, Sec. 99 of the OBCA provides exceptions.

3. Only if the proposal is financially related.

4. Only if the proposal benefits the majority of shareholders.

The correct answer is: No, Sec. 99 of the OBCA provides exceptions.

In most cases, a corporation is not required by law to circulate all shareholder proposals within a specific time frame. The relevant provision, Sec. 99 of the OBCA, outlines exceptions to this requirement. Therefore, the other options are incorrect because they do not accurately reflect the provisions in the law. Option A is incorrect because it is a blanket statement that does not take into account any specific circumstances or exceptions. Option C is incorrect because not all proposals will be financially related. Option D is incorrect because not all shareholder proposals will necessarily benefit the majority of shareholders.