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Is there an obligation on Ordinary Shares?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Is there an obligation on Ordinary Shares?

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 19, 2023 at 1:58 pm #687233
    danwilkinson93
    Participant
    • Topics: 10
    • Replies: 5
    • ☆

    I know they are treated as equity so the short answer is probably no…

    But surely if you have issued shares, irrespective of whether they are ordinary / preference, you need to pay back the investor?

    Thanks

    June 20, 2023 at 6:42 am #687267
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3447
    • ☆☆☆☆☆

    No contractual obligation to repay. if you read through the articles of a typical company.

    More of a legal question than SBR. 🙂

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  • The topic ‘Is there an obligation on Ordinary Shares?’ is closed to new replies.

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