The Revised Act permits a corporation to purchase, redeem, or otherwise acquire its own shares unless:

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07-04-2022
Business

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The Revised Act permits a corporation to purchase, redeem, or otherwise acquire its own shares unless:

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Emimesa13idn Emimesa13idn · Answer 1 · 2022-04-07T17:33:55-04:00

Emimesa13idn Emimesa13idn

07-04-2022

Answer:

The corporation's total assets after the distribution would be less than the sum of its total liabilities and the maximum amount that then would be payable for all outstanding shares having preferential rights in liquidation. The corporation would be unable to pay its debts as they become due in the usual course of its business.

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