Issuance of Stock Flashcards
1
Q
Types of Consideration
A
Money, binding obligation to perform future services with an agreed value, tangible/intangible property; services already performed.
2
Q
Par Value
A
Minimum issuance price. No par value means any valid consideration BOD deems adequate.
3
Q
Treasury Stock
A
Stock previously issued and reacquired re-sold as no par.
4
Q
Acquiring Property with Par Value Stock
A
OK if BOD values prop in good faith as at least par value.
5
Q
What if consideration less than par value?
A
Ds liable for signing off on below par issuance and purchaser b/c SHs must pay full consideration for shares.
6
Q
Preemptive Rights
A
Right to maintain % of ownership each time new issuance is released. Must be expressly granted in articles.
