What statutory protection is offered to a third party who enters into a contract with a person purporting to act on behalf of a company which is not yet formed? What are bonus shares? Why may a company wish to reduce its Share Capital?

What statutory protection is offered to a third party who enters into a contract with a person purporting to act on behalf of a company which is not yet formed? What are bonus shares? Why may a company wish to reduce its Share Capital?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 10QTD

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Question

What statutory protection is offered to a third party who enters into a contract with a person purporting to act on behalf of a company which is not yet formed?

What are bonus shares?

Why may a company wish to reduce its Share Capital?

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Explanation for bonus shares:

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Question-3 ) Why may a company wish to reduce its Share Capital?

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