2015 Kentucky Revised Statutes CHAPTER 279 - RURAL ELECTRIC AND RURAL TELEPHONE COOPERATIVE CORPORATIONS 279.430 Common and preferred stock -- Ownership and transfer.
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279.430 Common and preferred stock -- Ownership and transfer.
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Only a member of a corporation organized under KRS 279.310 to 279.600 may own
its common stock, and neither the common stock in any such corporation or any
interest therein shall be transferable or assignable, except as security for a loan from
the federal government, 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 KRS 279.310 to 279.600 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 KRS 279.310 to 279.600, shall at
any one (1) time own more than five percent (5%) of the outstanding common stock
of any corporation formed under KRS 279.310 to 279.600.
No corporation formed under KRS 279.310 to 279.600 shall pay dividends on either
its common stock or its preferred stock in an amount greater than four percent (4%)
per annum on each class of stock.
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: March 25, 1950
History: Created 1950 Ky. Acts ch. 147, sec. 13, effective March 25, 1950.
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