In Letter Ruling 200546027, (16) an S corporation could have been deemed to have a second class of stock due to its distributions to shareholders
and the terms of shareholder
may receive back an installment obligation for a corporation's asset sale, in complete corporate liquidation under Sec.
Measuring the effects on the stock price when companies ignore shareholder
votes is difficult.
run into problems when they have reduced or depleted their debt basis and the corporation repays any part of a shareholder
resolutions in most cases request a tangible strategy for dealing with environmental problems.
On top of the momentum it gained from the SEC report, the push for shareholder
democracy received a boost in late August from former SEC Chairman Richard Breeden.
Although he failed to win, the court criticized shareholder
meetings that were mostly staged and controlled by loud employees, warning that: "If a corporation arranges rehearsals for the meeting in order to expedite proceedings with shouting, such a shareholder
meeting might be invalid.
Aside from the normal section 367(b) notice requirements, a small shareholder
must also satisfy section 1.
In the event that during the Extraordinary General Shareholders
' Meeting alternative proposals are presented on the business included on the Agenda and they are submitted to voting, the proxyholder shall exercise the vote in the sense he deems most favorable to the interest of the grantor shareholder
In addition, the company's Shareholder
had to file an amended return to include the additional dividend in income and pay the additional tax due.
Managements of companies that have had a major layoff or [that have] seen their stock price drop sharply--a fairly large universe now--need to think hard about what they will say to shareholders
at this year's annual meeting," says John Wilcox, vice chairman of Georgeson Shareholder
Communications in New York.
, who treats the fair market value of the property as received in exchange for his or her stock, also recognizes a gain (IRC section 331(a)).