Which of the following statements relating to shares is not correct?
A) A share represents an ownership right in a company.
B) Each share in a company carries a right to vote for directors of the company.
C) Each share in a company carries a right to share proportionately in all new share issues of a company.
D) Each share in a company carries a right to share in the assets on the liquidation of the company.

Question

Quizplus · Accepted Answer

While shareholders generally have the right to subscribe to new share issues, this is not always a legally binding right and can vary depending on the company's articles of association and the specific terms of any new share issue. Therefore, not all new share issues will necessarily be available for purchase by all shareholders.

Which of the Following Statements Relating to Shares Is Not