The 2016 RMBCA provides a statutory ratification procedure for shares that may have been improperly issued. Upon the effectiveness of the ratification, the overissued shares are valid shares as of
A) the date originally issued.
B) the date of the ratification .
C) whatever time set forth in the bylaws has passed.
D) the date the overissue is discovered.

Question

The 2016 RMBCA provides a statutory ratification procedure for shares that may have been improperly issued. Upon the effectiveness of the ratification, the overissued shares are valid shares as of
A) the date  originally  issued.
B) the date  of the ratification .
C) whatever time set forth in the bylaws has passed.
D) the date the overissue is discovered.

Quizplus · Accepted Answer

The 2016 Revised Model Business Corporation Act (RMBCA) states that upon the effectiveness of the ratification of improperly issued shares, those shares are considered valid as of the date they were originally issued. This provision ensures that the shares are treated as if they had been properly issued from the start, maintaining continuity and stability in the corporation's share structure.

The 2016 RMBCA Provides a Statutory Ratification Procedure for Shares