Use the MBCA to answer the following questions.

Halo Enterprises Inc. is a corporation with one class of stock: Common A.

1. May the corporation declare a cash dividend to Common A shareholders owning 1,000 shares of stock or less and a stock dividend to Common A shareholders owning more than 1,000 shares? Discuss
2. Assume that the corporation defaulted on various loans last year and has been sued by several creditors. May it declare a cash dividend? Discuss
3. The directors have resolve to pay a cash dividend of $1 per share for every share of common stock outstanding as of October 1. The cash dividend will be paid on November 1. On October 15, Shareholder Samantha sold her shares to her sisters. Who will receive the cash dividend? Discuss.