The correct answer is: B. Directors of the Company
Qualification shares are shares that a director of a company must hold in order to be eligible to hold office. The number of qualification shares is usually specified in the company’s articles of association.
The purpose of qualification shares is to ensure that directors have a financial stake in the company and are therefore more likely to act in the best interests of the company.
If a director fails to hold the required number of qualification shares, they may be removed from office by the company’s shareholders.
Here is a brief explanation of each option:
- A. Officers of the Company
Officers of a company are individuals who are appointed by the board of directors to manage the day-to-day operations of the company. Officers typically include the president, vice president, secretary, and treasurer.
Officers of a company are not required to hold any shares in the company.
- B. Directors of the Company
Directors of a company are individuals who are elected by the shareholders to oversee the management of the company. Directors are responsible for setting the company’s strategic direction, appointing the officers of the company, and overseeing the company’s financial performance.
Directors of a company are required to hold a minimum number of shares in the company, which is known as qualification shares. The number of qualification shares is usually specified in the company’s articles of association.
- C. Creditors of the Company
Creditors of a company are individuals or businesses that have lent money to the company. Creditors have a legal right to be repaid the money that they have lent to the company.
Creditors of a company are not required to hold any shares in the company.
- D. Auditors of the Company
Auditors of a company are individuals or firms that are appointed by the shareholders to audit the company’s
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