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Monday, November 03, 2008 3:11:26 PM
itlogic the A/S number would be unchanged by returning stock to the treasury.
Example: 5 billion A/S and 5 billion O/S. 1.7 billion reaquired by the company and moved to the treasury. A/S remains the same but O/S would decrease by 1.7 billion to 3.3 billion.
Now, if RMDM was to cancel those shares they could decrease the A/S by 1.7 billion. That requires an amendment to the articles of incorporation.
While in the treasury thos shares are able to be resold by the company at any time without affecting the A/S count.
Example: 5 billion A/S and 5 billion O/S. 1.7 billion reaquired by the company and moved to the treasury. A/S remains the same but O/S would decrease by 1.7 billion to 3.3 billion.
Now, if RMDM was to cancel those shares they could decrease the A/S by 1.7 billion. That requires an amendment to the articles of incorporation.
While in the treasury thos shares are able to be resold by the company at any time without affecting the A/S count.
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