Self Help Documentation

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What happens to the shareholders whose shares are extinguished?

It depends on the reason for extinguishment:

  • In buybacks, shareholders receive payment for their shares.
  • In capital reduction, shareholders may receive compensation or a proportional reduction in holdings.
  • In forfeiture, shareholders lose their rights due to non-payment of dues.
  • In mergers, shareholders might get shares of the new entity or compensation in cash.

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