The Revised Act permits a corporation to purchase,redeem,or otherwise acquire its own shares unless:

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Both options A and B are conditions that must be met for a corporation to be able to purchase, redeem, or acquire its own shares under the Revised Act. If the corporation's total assets fall below its total liabilities and the amount payable for all outstanding shares with preferential rights in liquidation, it may not purchase its own shares. Additionally, if the purchase would render the corporation unable to pay its debts as they become due in the ordinary course of business, it also may not acquire its own shares. Therefore, both options A and B must be met for a corporation to be able to purchase, redeem, or acquire its own shares.

The Revised Act Permits a Corporation to Purchase,redeem,or Otherwise Acquire