Question

The directors of a company decide to offer shares of the company from the company's unissued stock directly to company employees. The proceeds of the sale go to the company, but the directors take a commission from the employees on these sales. All of the following statements are true EXCEPT: A this is a non-issuer transaction B the directors are defined as agents of the issuer C the directors must be registered D the securities must be registered

Answer 1

All of the following statements are true except A) this is a non issuer transaction.

Step-by-step explanation:

here director of a company is issuing common stock to company's employees , and here the proceeds are going to the issuer that means this is definitely a issuer transaction.

Also according to law it is mandatory for the securities to be registered before company can offer them to public. A director should also be registered before they can act as an agent of the company and can have any effect on security transaction on behalf of issuer.