Section 491.912 - Consideration for issuance of shares; payment; rights and privileges; conclusive judgment of value.
SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980
491.912 Consideration for issuance of shares; payment; rights and privileges; conclusive judgment of value.
Sec. 912.
(1) Shares shall be issued for a consideration not less than the par value of the shares, as fixed by the board. That part of the capital in excess of par of a stock association transferred to stated capital upon issuance of shares as a share dividend shall be the consideration for issuance of the shares.
(2) Consideration for the issuance of shares may be paid in whole or in part in money or other tangible or intangible property. If payment of the full consideration for which shares are to be issued is received by the association, the subscriber has all the rights and privileges of a member, including registration of a certificate representing the shares in the subscriber's name, and the shares shall be fully paid and nonassessable. If the consideration is future payment, the rights of the subscriber shall be determined by the subscription agreement. In the absence of fraud in the transaction, the judgment of the board as to the value of the consideration received for shares, options, or rights to shares is conclusive.
History: 1980, Act 307, Eff. Jan. 1, 1981 ;-- Am. 1987, Act 106, Imd. Eff. July 7, 1987