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Which two of the following are correct regarding treasury shares?
A all companies can hold treasury shares
B they carry full dividend rights
C They do not carry full voting rights in company meetings
D only ordinary shares can be held in treasuryThe answers are A,C. I thought they didn’t carry any voting rights why does it mention full voting rights do they carry some then? And I thought that only ordinary shares can be held in treasury?
It is important to note that treasury shares must have been quoted on a recognized stock exchange and do not carry voting rights or entitlement to receive dividends.
Hi, where’s your question from?
I believe that there is a mistake in the answer and it should be C and probably D
Treasury shares mmust have been quoted on a recognised stock exchange and, by definition, that excludes shares of a private company.
Treasury shares carry no dividend rights nor any voting rights.
Any class of share can be held in treasury except! … it is MOST unlikely that preference shares will have been quoted on a recognised stock exchange so I’m leaning heavily towards option D as being the second correct statement after having already chosed option C.
Is this an OpenTuition question? Where’s it from?
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