A member with minority protection rights can do which of the following?

The option stating that a member with minority protection rights can prohibit payments out of capital in a private company is correct because minority protection rights are designed to safeguard the interests of minority shareholders. One of the protective measures includes the ability to challenge transactions that might adversely affect their interests, such as payments out of capital. This is significant as it prevents the company from depleting its capital to the detriment of minority shareholders, thereby ensuring their investments are not at risk due to potentially irresponsible financial decisions made by those holding controlling interests.

In contrast, being able to force changes in the company’s articles, demand dividends be paid, or require directors to resign typically involves either a majority decision or specific provisions within the articles that may not be as easily navigated by a minority shareholder. Therefore, while minority shareholders do have rights, the capacity to prohibit payments out of capital truly reflects their protective rights in the context of financial management within a private company.