§ 5004. Consideration and payment for shares.
1.Consideration for the\nissue of shares shall consist of money or (except as otherwise required\nby subdivision a of subdivision one of section four thousand four) other\nproperty tangible or intangible, or labor or services actually received\nby or performed for the corporation or for its benefit or in its\nformation or reorganization, or a combination thereof. In the absence of\nfraud in the transaction, the judgment of the board or stockholders, as\nthe case may be, as to the value of the consideration received for\nshares shall be conclusive.\n 2. Neither obligations of the subscriber for future payments nor\nfuture services shall constitute payment or part payment for shares of a\ncorporation.\n 3. Shares may be issued for such consi
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§ 5004. Consideration and payment for shares. 1. Consideration for the\nissue of shares shall consist of money or (except as otherwise required\nby subdivision a of subdivision one of section four thousand four) other\nproperty tangible or intangible, or labor or services actually received\nby or performed for the corporation or for its benefit or in its\nformation or reorganization, or a combination thereof. In the absence of\nfraud in the transaction, the judgment of the board or stockholders, as\nthe case may be, as to the value of the consideration received for\nshares shall be conclusive.\n 2. Neither obligations of the subscriber for future payments nor\nfuture services shall constitute payment or part payment for shares of a\ncorporation.\n 3. Shares may be issued for such consideration, not less than the par\nvalue thereof, as is fixed from time to time by the board.\n 4. Treasury shares may be disposed of by a corporation on such terms\nand conditions as are fixed from time to time by the board.\n 5. Upon distribution of authorized but unissued shares to\nstockholders, that part of the undivided profits or surplus of a\ncorporation which is concurrently transferred to capital stock shall be\nthe consideration for the issue of such shares.\n 6. In the event of a conversion of capital notes, debentures or shares\ninto shares, or in the event of an exchange of capital notes, debentures\nor shares for shares, the consideration for the shares so issued in\nexchange or conversion shall be the sum of (a) either the principal sum\nof, and accrued interest on, the capital notes or debentures so\nexchanged or converted, or the par value of the shares so exchanged or\nconverted, plus (b) any additional consideration paid to the corporation\nfor the new shares, plus (c) any undivided profits or surplus\ntransferred to capital stock in respect of the new shares.\n 7. Certificates for shares may not be issued until the full amount of\nthe consideration therefor has been paid.\n 8. When the consideration for shares has been paid in full, the\nsubscriber shall be entitled to all the rights and privileges of a\nholder of such shares and to a certificate representing his shares, and\nsuch shares shall be fully paid and, subject to sections one hundred\nthirteen-a, one hundred thirteen-b, one hundred fourteen, three hundred\nfive, three hundred five-a, three hundred six, three hundred twenty-two,\nthree hundred twenty-two-a and three hundred twenty-three of this\nchapter, shall be nonassessable.\n