If a Company's Constitution Does Not Contain Rules Governing the Forfeiture

question 22

Multiple Choice

If a company's constitution does not contain rules governing the forfeiture of shares, then the company:

• A) may forfeit shares but not reissue them.
• B) cannot forfeit shares.
• C) may forfeit shares and reissue them at a later date.
• D) can register the shares in the name of another shareholder, but cannot receive payment from that shareholder.

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Definitions:

Null Hypothesis

A statement used in hypothesis testing that posits there is no statistical significance in a set of given observations, aiming to be either rejected or not rejected.

Alpha

In hypothesis testing, the alpha value denotes the threshold of significance, where typical levels are 0.05 (5%) or 0.01 (1%), used to determine if the null hypothesis can be rejected.

Statistical Probability

The likelihood of an event occurring based on a mathematical model, often expressed as a number between 0 and 1.