Practice question
A corporation resells shares it previously issued, fully collected, and later lawfully reacquired as treasury shares. A manager says these must be treated as never-issued shares for section 59 solely because the corporation is the seller. Which is best?
- The seller’s identity always makes shares unissued
- Treasury shares were previously issued; a resale should not be confused with a subscription for never-issued stock merely because the corporation sells them
- Treasury shares are government bonds
- Reacquisition erases their entire history as a matter of definition
- All treasury shares must always be canceled immediately
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463 — RA 11232, sections 9, 35(f), and 59
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