alleryStart learning →What happens to shares the transferee company would hold in itself after a s.232 merger?
AThey are held in trust
BThey are sold at auction
CThey become debentures
DThey are cancelled
Answer & Solution
Correct answer: D. They are cancelled
The proviso to s.232(3)(b) bars the transferee from holding its own shares, which are cancelled or extinguished.
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