According to the Corporations Act, when a company issues shares to the public, the issue price, terms and rights of the shares are determined by:
A) the Australian Securities Exchange.
B) the company's directors.
C) the Australian Investments and Securities Commission.
D) the company's auditors.

Question

Quizplus · Accepted Answer

The issue price, terms and rights of the shares are determined by the company's directors, as stated in the Corporations Act. The Australian Securities Exchange (ASX) only lists the shares once they have been issued, but does not determine their issue price or terms. The Australian Investments and Securities Commission (ASIC) is a regulatory agency that enforces compliance with the Corporations Act, but does not determine the issue price, terms or rights of shares. The company's auditors do not have a role in determining the issue price, terms or rights of shares.

According to the Corporations Act, When a Company Issues Shares