Which of the following statements is incorrect?
A) Each share in a company carries a right to share in the assets on the liquidation of the company;
B) Each share in a company carries a right to share proportionately in all new share issues of a company;
C) A share represents an ownership right in a company;
D) Each share in a company carries a right to vote for directors of the company.

Question

Quizplus · Accepted Answer

Not every share in a company carries a preemptive right to subscribe to a proportionate number of new share issues of the same class. Some companies may issue new shares without offering them to existing shareholders first.

Which of the Following Statements Is Incorrect