Which shares may be issued but are limited due to regulatory conditions in certain corporations?

No-par value shares are often subject to regulatory conditions, which can limit their issuance in certain corporations. These types of shares do not have a specified par value, meaning they can be issued at any price determined by the board of directors. However, regulations in some jurisdictions may impose restrictions or requirements regarding their issuance to protect shareholders and creditors.

For example, laws might dictate that while a corporation can issue no-par value shares, it must still comply with specific capital maintenance rules, ensuring that the capital structure remains healthy and that shareholders have adequate rights. The lack of a par value can create uncertainty about the minimum amount investors must contribute, and regulators may impose controls to ensure that shares are not issued at excessively low prices that could undermine the financial stability of the corporation.

This distinctive characteristic of no-par value shares, with their regulatory considerations, is what distinguishes them from common shares, founder's shares, and preferred shares, which typically do not have the same level of regulatory concern attached to their issuance under most circumstances.