Redemption of shares is not permitted if the corporation:
A) is likely to be rendered insolvent.
B) asks for an injunction.
C) has outstanding treasury shares.
D) would, by that action, reduce total assets below the stated capital amount.

Question

Quizplus · Accepted Answer

D  Redemption of shares is not permitted if it would render the corporation insolvent or if it would reduce the total assets below the stated capital amount, as these actions could jeopardize the financial stability of the corporation.

Redemption of Shares Is Not Permitted If the Corporation