unissued shares 2

[mr smithh]

mr smithh

First, I must thank philegal for the input.

A private limited company as unissued shares but for many decades these shares were issued. Then again they became unissued for a number of decades, up to the present time.

Is this the correct classification for these shares or is this classification being used incorretly.

Anyone know?

[philegal]

Dear Mr. Smithh,

The shares would either be issued or unissued. I'm not sure I understand you right but let me guess the scenario: first, the shares were issued but then they were bought-back by the company thus became unissued (the only way that shares become unissued is they have been redeemed or bought-back by the company). Then they were issued again. Were they issued and re-issued to the same shareholder?

In any case, only current shareholders (i.e. holders of the issued shares) at the time of the distribution of dividends are entitled to the dividends. As they say, you cannot have your cake and eat it too.

Or are you asking whether where dividends were declared while "holder of the 'unissued' issues" was still holder of the issued shares, but then failed to claim the dividends while still holder of the issued shares which were then bought-back by the company. (This is getting too complicated for me). In such case, unless they figured in the redemption or buy-back of the shares, the company still owes the subject shareholder the dividends.

Please go consult a solicitor or accountant in this regard.

Best regards,