(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
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 specifies
them. A call for payment by the board of directors shall be uniform so far as practicable
as to all shares of the same class or series, unless the subscription agreement specifies
(3) Shares issued pursuant to subscriptions entered into before incorporation shall
be fully paid and nonassessable when the corporation receives the consideration 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
owed as any other debt. Alternatively, unless the subscription agreement provides otherwise, the corporation
may rescind the agreement and may sell the shares if the debt remains unpaid more
than twenty (20) days after the corporation sends written demand for payment to the
(5) A subscription agreement entered into after incorporation shall be a contract
between the subscriber and the corporation subject to KRS 271B.6-210.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.