Gallagher Corporation issued 100,000 shares of $40 par
value stock for $50 per share to various investors. Subsequently,
Gallagher purchased back 10,000 of those shares for $30 per
share and held them as treasury stock. When the price of the
stock recovered somewhat, Gallagher sold this treasury stock to
Thomas for $35 per share. Which of the following statements is
I. Gallagher’s purchase of the stock at below par value is illegal.
II. Gallagher’s purchase of the stock at below par value is void
as an ultra vires act.
III. Gallagher’s resale of the treasury stock at below par value is