70A-8-210 - Overissue.
70A-8-210. Overissue.
(1) In this section, "overissue" means the issue of securities in excess of the amount theissuer has corporate power to issue, but an overissue does not occur if appropriate action hascured the overissue.
(2) Except as otherwise provided in Subsections (3) and (4), the provisions of this chapterwhich validate a security or compel its issue or reissue do not apply to the extent that validation,issue, or reissue would result in overissue.
(3) If an identical security not constituting an overissue is reasonably available forpurchase, a person entitled to issue or validation may compel the issuer to purchase the securityand deliver it if certificated or register its transfer if uncertificated, against surrender of anysecurity certificate the person holds.
(4) If a security is not reasonably available for purchase, a person entitled to issue orvalidation may recover from the issuer the price the person or the last purchaser for value paid forit with interest from the date of the person's demand.
Enacted by Chapter 204, 1996 General Session