Texas Business Organizations Code - Section 21.161. Amount Of Consideration For Issuance Of Certain Shares
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§ 21.161. AMOUNT OF CONSIDERATION FOR ISSUANCE OF CERTAIN
SHARES. (a) Consideration to be received by a corporation for the
issuance of shares with par value may not be less than the par value
of the shares.
(b) The part of the surplus of a corporation that is
transferred to stated capital on the issuance of shares as a share
distribution is considered to be the consideration for the issuance
of those shares.
(c) The consideration received by a corporation for the
issuance of shares on the conversion or exchange of its
indebtedness or shares is:
(1) the principal of, and accrued interest on, the
indebtedness exchanged or converted, or the stated capital on the
issuance of the shares;
(2) the part of surplus, if any, transferred to stated
capital on the issuance of the shares; and
(3) any additional consideration paid to the
corporation on the issuance of the shares.
(d) The consideration received by a corporation for the
issuance of shares on the exercise of rights or options is:
(1) any consideration received by the corporation for
the rights or options; and
(2) any consideration received by the corporation for
the issuance of shares on the exercise of the rights or options.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.154 21.155 21.156 21.157 21.158 21.159 21.160 21.161 21.162 21.163 21.164 21.165 21.166 21.167 21.168
Last modified: August 11, 2007
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