Which of the following is correct with regard to treasury shares?
A) The 1980 amendments to the MBCA eliminated the concept of treasury shares.
B) The acquisition of such shares by the corporation is a distribution to shareholders with an effect similar to that of a dividend.
C) Under the Revised Act, treasury shares are unauthorized but issued.
D) Treasury shares are issued and outstanding.

Question

Quizplus · Accepted Answer

The 1980 amendments to the Model Business Corporation Act (MBCA) indeed eliminated the concept of treasury shares, aligning with modern corporate governance practices.

Which of the Following Is Correct with Regard to Treasury