A public issue of bonds approved by the board of directors (and shareholders if necessary) can be sold when:
A) the registration statement has been filed with the OSC and the syndicate is set.
B) the investment banker's have accepted the offer for sale and have held it for 20 days from announcement.
C) the registration statement has been filed with the OSC accepted and the 20 day waiting period has elapsed.
D) the role of the trustee has been determined and an indenture ahs been written and signed.

Question

Quizplus · Accepted Answer

According to securities law, the registration statement must be filed with the appropriate regulatory body (in this case, the OSC) and accepted before the bonds can be sold to the public. Additionally, there is a 20-day waiting period after the statement is accepted before the bonds can be sold. Therefore, the correct answer is C.

A Public Issue of Bonds Approved by the Board of Directors