§ 28-13-2-1 — Subscription for shares; terms; call for payment; nonassessable shares; default in payment

Indiana § 28-13-2-1

• Jurisdiction: Indiana
• Art. 13: CORPORATE GOVERNANCE
• Ch. 2: Issuance of Shares

Text

(a) A subscription for shares entered into
before incorporation is irrevocable for six (6) months unless the
subscription agreement provides a longer or shorter period or all the
subscribers agree to revocation.
(b) The board of directors may determine the payment terms of
subscriptions for shares that were entered into before incorporation,
unless the subscription agreement specifies terms. A call for payment
by the board of directors must be uniform as far as practicable as to all
shares of the same class or series, unless the subscription agreement
specifies otherwise.
(c) Shares issued under subscriptions entered into before
incorporation are fully paid and nonassessable when the corporation
receives the consideration specified in the subscription agreement.
(d) If a subscriber defaults in payment of money or property under
a subscription agreement entered into before incorporation, the
corporation may collect the amount owed as any other debt.
Alternatively, unless the subscription agreement provides otherwise,
the corporation may rescind the agreement and may sell the shares if
the debt remains unpaid more than twenty (20) days after the
corporation sends written demand for payment to the subscriber.

Legislative History

As added by P.L.14-1992, SEC.163.