When can a corporation issue shares?

A corporation can issue shares after receiving full consideration for those shares, which is the correct response. This consideration can be in the form of money, services, or other property, and it ensures that the corporation is receiving something of value in exchange for the shares being issued. This concept is tied to the principle of maintaining capital integrity, as issuing shares without adequate consideration can jeopardize the financial stability of the corporation and mislead investors regarding its value.

The board of directors does indeed play a vital role in the issuance of shares, but their approval alone is not sufficient for a valid issuance; the corporation must also ensure that there is full consideration. While establishing by-laws and incorporating are essential steps in the formation of a business, these actions alone do not allow for the issuance of shares without the necessary consideration being in place. Therefore, it is clear that the process of issuing shares is contingent upon the receipt of proper consideration to avoid violating securities regulations and maintaining corporate solvency.