The Primary Responsibility of a Bank Acting as Registrar of Capital

question 890

Multiple Choice

The primary responsibility of a bank acting as registrar of capital stock is to:

• A) Ascertain that dividends declared do not exceed the statutory amount allowable in the state of incorporation.
• B) Account for stock certificates by comparing the total shares outstanding to the total in the shareholders subsidiary ledger.
• C) Act as an independent third party between the board of directors and outside investors concerning mergers, acquisitions, and the sale of treasury stock.
• D) Verify that stock is issued in accordance with the authorization of the board of directors and the articles of incorporation.

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