Ontario Barrister and Solicitor Practice Exam

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Study for the Ontario Barrister and Solicitor Exam. Quiz with flashcards and multiple choice questions, each with hints and explanations. Prepare for your legal career!

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

  1. 1

  2. 2

  3. 3

  4. 4

The correct answer is: 1

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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