2014 Kentucky Revised Statutes CHAPTER 279 - RURAL ELECTRIC AND RURAL TELEPHONE COOPERATIVE CORPORATIONS 279.100 Common and preferred stock -- Ownership and transfer.
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279.100 Common and preferred stock -- Ownership and transfer.
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Only a member of a corporation organized under this chapter may own its
common stock, and neither the common stock in any such corporation nor any
interest therein shall be transferable or assignable, either by act of the parties
or by operation of law, to any person who is not eligible to be a member of the
corporation.
No corporation formed under this chapter shall issue common stock to a
member until it has been fully paid for, but the promissory notes of a member
may be accepted by the corporation as full or partial payment. The corporation
shall hold the stock as security for the payment of the note, but such retention
as security shall not affect the member's right to vote.
No person, other than a corporation formed under this chapter, shall at any one
time own more than five percent (5%) of the outstanding common stock of any
corporation formed under this chapter.
Any such corporation may at any time, as specified in its bylaws, except when
the debts of the corporation exceed fifty percent (50%) of its assets, buy in or
purchase its common stock at the book value thereof, as conclusively
determined by its board of directors, and pay for it in cash within one (1) year
thereafter.
Preferred stock may be owned by and transferred to any person, and may be
made redeemable and retirable by the corporation on such terms and
conditions as are provided for in the articles of incorporation and printed on the
face of each certificate. Ownership of preferred stock shall not confer on the
holder any right to vote.
Effective:July 15, 1986
History: Amended 1986 Ky. Acts ch. 111, sec. 1, effective July 15, 1986. -Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 883j-8.
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