The Corporations Law was amended in 1998 in relation to the par value of shares.That amendment has the effect of:
A) making the use of par values optional for companies.
B) requiring companies not to issue shares with a par value.
C) requiring the calculation of the share premium or discounts to be based on an average of the market price for the share over the current reporting period.
D) making the use of par values optional for companies and requiring the calculation of the share premium or discounts to be based on an average of the market price for the share over the current reporting period.

Question

Quizplus · Accepted Answer

The amendment in 1998 to the Corporations Law abolished the concept of par value for shares, thereby requiring companies not to issue shares with a par value. This change meant that all shares issued after the amendment are without a nominal or par value.

The Corporations Law Was Amended in 1998 in Relation to the Par