Colorado § 7-42-104 Assessment on stock

Colorado Statutes

§ 7-42-104 — Assessment on stock

Colorado § 7-42-104

Title 07Corporations

Art.Ditch and Reservoir Companies

This text of Colorado § 7-42-104 (Assessment on stock) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 7-42-104 (2026).

Text

(1)If any corporation owning any ditch or canal for conveying or reservoir for storing water for irrigation purposes deems it necessary to raise funds to keep its ditch, canal, or reservoir in good repair or to pay any indebtedness theretofore contracted or the interest thereon, the corporation shall have power to make an assessment on the capital stock thereof, to be levied pro rata on the shares of stock payable in money, labor, or both, for the purpose of keeping the property of the corporation in good repair and for the payment of any indebtedness or interest thereon.

(2)But no such assessment shall be made unless the question of making the assessment is first submitted to the stockholders of the corporation at an annual meeting or at a special meeting called for that purpo

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(1) If any corporation owning any ditch or
canal for conveying or reservoir for storing water for irrigation purposes deems it
necessary to raise funds to keep its ditch, canal, or reservoir in good repair or to pay
any indebtedness theretofore contracted or the interest thereon, the corporation
shall have power to make an assessment on the capital stock thereof, to be levied
pro rata on the shares of stock payable in money, labor, or both, for the purpose of
keeping the property of the corporation in good repair and for the payment of any
indebtedness or interest thereon.

(2) But no such assessment shall be made unless the question of making the
assessment is first submitted to the stockholders of the corporation at an annual
meeting or at a special meeting called for that purpose, if a quorum is present, and
the majority of stock represented at such meeting, either by the owner in person or
by proxy, entitled to vote thereon shall vote in favor of making such assessment;
and if said stockholders fail to hold any such meeting or fail to make or authorize
any assessment within ninety days after the close of the company's fiscal year, the
directors shall have power to make any such assessment at any regular or special
meeting called therefor for that year.

(3) Such corporation may provide for the sale and forfeiture of shares of
stock for such assessment as provided in subsection (4) of this section and may
have the benefit of said subsection (4) for the recovery of such assessments by
forfeiture or sale of the stock in default, and such corporation shall have a
perpetual lien upon such shares of stock and the water rights represented by the
same for any and all such assessments until the same are fully paid. Such
corporation may also provide that no water shall be delivered until all assessments
are paid.

(4) The shares of stock shall be deemed personal property and transferable
as such in the manner provided by the bylaws, and subscriptions thereof shall be
made payable to the corporation and shall be payable in such installments and at
such times as shall be determined by the directors or trustees. An action may be
maintained in the name of the corporation to recover any installment which shall
remain due and unpaid for the period of twenty days after personal demand
therefor or, if personal demand is not made, within thirty days after a written or
printed demand has been deposited in the post office properly addressed to the
post office address of the delinquent stockholder. The directors or trustees may
prescribe by bylaws for a forfeiture or sale of stock on failure to pay the
installments or assessments that from time to time may become due, but no
forfeiture of stock or of the amount paid thereon shall be declared as against any
estate or against any stockholder before demand has been made for the amount
due thereon either in person or by written or printed notice duly mailed to the last-known address of such stockholder at least thirty days prior to the time the
forfeiture is to take effect; but the proceeds of any sale, over and above the amount
due on said shares, shall be paid to the delinquent stockholder.

Legislative History

Source: G.L. � 276. G.S. � 310. R.S. 08: � 991. L. 17: p. 149, � 1. C.L. � 2356. L. 27: p. 263, � 1. CSA: C. 41, � 144. CRS 53: � 31-14-4. C.R.S. 1963: � 31-14-4. L. 65: p. 443, � 1. L. 79: (2) R&RE, p. 333, � 1, effective June 15.