This has to do with Nevada corp, if it matters...
First of all, it's my understanding that in accounting practice, a share that is bought back and "retired" is removed from circulation forever. It does not even go back to the treasury. If that is correct, then here is my question: Say the corporation has 1000 shared authorized. All 1000 are in circulation. They buy back 500 and retired them. Can the corp issue a new set of 500?
I understand about amending the articles of incorp. And I understand why you would ask, "why would you want to do this?" But I thought the question was a one of accounting practice, and what a "retired" share really means.
What you are asking is a legal question, not a tax or even an accounting question. I don't practice in Nevada, so I can say with certainty. In California when shares are "retired" they revert to authorized but unissued status. So they are available to again be issued later if all the appropriate legal requirements are met. Stu
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