§ 7-1.2-603 - Subscription for shares.
SECTION 7-1.2-603
§ 7-1.2-603 Subscription for shares.– (a) A subscription for shares entered into before incorporation is irrevocablefor a period of six (6) months unless the subscription agreement provides alonger or shorter period or all the subscribers agree to revocation. Asubscription for shares is not enforceable against a subscriber unless inwriting and signed by the subscriber or by an agent of the subscriber.
(b) The board of directors may determine the payment terms ofsubscriptions for shares that were entered into before incorporation, unlessthe subscription agreement specifies them. A call for payment by the board ofdirectors must be uniform so far as practicable as to all shares of the sameclass or series, unless the subscription agreement specifies otherwise.
(c) Shares issued pursuant to subscriptions entered intobefore incorporation are fully paid and nonassessable when the corporationreceives the consideration specified in the subscription agreement.
(d) If a subscriber defaults in payment of money or propertyunder a subscription agreement entered into before incorporation, thecorporation may collect the amount owed as any other debt. Alternatively,unless the subscription agreement provides otherwise, the corporation mayrescind the agreement and may sell the shares if the debt remains unpaid morethan 20 days after the corporation sends written demand for payment to thesubscriber.
(e) A subscription agreement entered into on or afterincorporation is a contract between the subscriber and the corporation subjectto § 7-1.2-604.