Commercial Law, 2018 Bar — Question XI-c

ESSAY

Yenetic Corporation wants to increase its Authorized Capital Stock (which is currently fully subscribed and issued) to be able to increase its working capital to undertake business expansions. The board of directors consults with you as legal counsel on the proper answers to the following issues: (c) Once the increase in the Authorized Capital Stock of Yenetic has been legally effected with the SEC, can the new shares from the unissued shares be offered to a new limited group of investors without having to offer them to the shareholders of record, since no pre-emptive right is provided for in the AOI and By-Laws of Yenetic?

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