If a company has created a forfeited shares reserve,this means that:
A) The company is not a member of the Australian Stock Exchange and its constitution does not require it to refund amounts already paid by defaulting investors.
B) The company is expecting that the amounts unpaid will be collected in the next period.
C) The company is a member of the Australian Stock Exchange and is required to refund amounts already paid by defaulting investors.
D) The company is holding the amounts already paid by defaulting investors in trust in order to repay them on the request of the investor.

Question

Quizplus · Accepted Answer

A forfeited shares reserve is created when a company decides not to refund amounts already paid by defaulting investors, often because it is not required to do so by its constitution or the rules of the stock exchange it is not a member of.

If a Company Has Created a Forfeited Shares Reserve,this Means