§ 23-1-26-5 — Rights, options, or warrants

Indiana § 23-1-26-5

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 1: INDIANA BUSINESS CORPORATION LAW
• Ch. 26: Issuance of Shares

Text

(a) A corporation, acting through its board of
directors, may create or issue rights, options, or warrants for the
purchase of shares or other securities of the corporation or any
successor in interest of the corporation. The board of directors shall
determine the terms upon which the rights, options, or warrants are
issued, their form and content, and the consideration for which the
shares or other securities are to be issued. The rights, options, or
warrants may be issued with or without consideration, and may (but
need not) be issued pro rata.
(b) The terms and conditions of the rights, options, or warrants,
including the rights, options, or warrants outstanding on July 1, 2009,
may include, without limitation, restrictions or conditions that:
(1) preclude or limit the exercise, transfer, or receipt of the rights,
options, or warrants by:
(A) a person owning or offering to acquire a specified number
or percentage of the outstanding shares or other securities of the
corporation; or
(B) a transferee of the person described in clause (A); or
(2) invalidate or void the rights, options, or warrants held by the
person described in subdivision (1)(A) or a transferee described
in subdivision (1)(B).

Legislative History

As added by P.L.149-1986, SEC.10. Amended by P.L.133-2009, SEC.17.