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the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Subtitle 6 Shares and Distributions
271B.6.200 Subscription of shares before incorporation.
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271B.6-200 Subscription of shares before incorporation.
(1) A subscription for shares entered into before incorporation shall be irrevocable for
six (6) months, unless the subscription agreement provides a longer or shorter <br>period or all the subscribers agree to revocation.
(2) The board of directors may determine the payment terms of subscriptions for shares
that were entered into before incorporation, unless the subscription agreement <br>specifies them. A call for payment by the board of directors shall be uniform so far <br>as practicable as to all shares of the same class or series, unless the subscription <br>agreement specifies otherwise.
(3) Shares issued pursuant to subscriptions entered into before incorporation shall be
fully paid and nonassessable when the corporation receives the consideration <br>specified in the subscription agreement.
(4) If a subscriber defaults in payment of money or property under a subscription
agreement entered into before incorporation, the corporation may collect the amount <br>owed as any other debt. Alternatively, unless the subscription agreement provides <br>otherwise, the corporation may rescind the agreement and may sell the shares if the <br>debt remains unpaid more than twenty (20) days after the corporation sends written <br>demand for payment to the subscriber.
(5) A subscription agreement entered into after incorporation shall be a contract
between the subscriber and the corporation subject to KRS 271B.6-210.
Effective: January 1, 1989 <br>History: Created 1988 Ky. Acts ch. 23, sec. 37, effective January 1, 1989.
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