Texas Business Organizations Code

§ 21.161 — AMOUNT OF CONSIDERATION FOR ISSUANCE OF CERTAIN SHARES

BO § 21.161Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. D. SHARES, OPTIONS, AND CONVERTIBLE SECURITIES

Statute text

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(a)Consideration to be received by a corporation for the issuance of shares with par value may not be less than the par value of the shares.

(b)The part of the surplus of a corporation that is transferred to stated capital on the issuance of shares as a share distribution is considered to be the consideration for the issuance of those shares.

(c)The consideration received by a corporation for the issuance of shares on the conversion or exchange of its indebtedness or shares is:

(1)the principal of, and accrued interest on, the indebtedness exchanged or converted, or the stated capital on the issuance of the shares;

(2)the part of surplus, if any, transferred to stated capital on the issuance of the shares; and

(3)any additional consideration paid to the corporation on the issuance of the shares.

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.