(a) When redeemable shares of a corporation are redeemed or purchased by the corporation, the redemption or purchase shall effect a cancellation of the shares, and a statement of cancellation shall be filed as provided in this section.
(b) Upon cancellation, the shares shall be restored to the status of authorized but unissued shares unless the articles of incorporation provide that such shares when redeemed or purchased shall not be reissued, in which case the filing of the statement of cancellation shall constitute an amendment to the articles of incorporation and shall reduce the number of shares of the class so cancelled which the corporation is authorized to issue by the number of shares so cancelled.
(c) The statement of cancellation shall be executed and filed in accordance with § 4-26-1201 and verified by one (1) of the officers signing such statement and shall set forth:
(1) The name of the corporation;
(2) The number of redeemable shares cancelled through redemption or purchase, itemized by classes and series;
(3) The aggregate number of issued shares, itemized by classes and series, after giving effect to such cancellation;
(4) The amount, expressed in dollars, of the stated capital of the corporation after giving effect to such cancellation;
(5) If the articles of incorporation provide that the cancelled shares shall not be reissued, then the number of shares which the corporation has authority to issue, itemized by classes and series, after giving effect to such cancellation.
(d) When this statement of cancellation is filed in accordance with § 4-26-1201, the stated capital of the corporation shall be deemed to be reduced by that part of the stated capital which was, at the time of the cancellation, represented by the shares so cancelled.
(e) Nothing contained in this section shall be construed to forbid a cancellation of shares or a reduction of stated capital in any other manner permitted by this chapter.
Section: Previous 4-26-607 4-26-608 4-26-609 4-26-610 4-26-611 4-26-612 4-26-613 4-26-614 4-26-615 4-26-616 4-26-617 4-26-618 4-26-619 4-26-620 4-26-621 NextLast modified: November 15, 2016