Section 491.914 - Consideration for shares issued in exchange or conversion; determination. - Michigan Statutes

SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980

491.914 Consideration for shares issued in exchange or conversion; determination.

Sec. 914.

Upon a conversion of shares or of convertible debt instruments provided for by section 516, or upon an exchange of shares for the same or a different number of shares, whether of the same or a different class, consideration for the shares issued in exchange or conversion shall be determined by the board, and shall be 1 or more of the following:

(a) The stated capital then represented by the shares exchanged or converted, or, in case of convertible debt instruments, the principal sum of and accrued interest on the debt instruments.

(b) Any stated capital not previously allocated to a designated class of shares which is thereupon allocated to the new shares.

(c) That part of capital in excess of par, if any, transferred to stated capital upon the issuance of shares for the shares or debt instruments exchanged or converted.

(d) Any additional consideration paid to the association upon the issuance of shares for the shares or debt instruments exchanged or converted.

History: 1980, Act 307, Eff. Jan. 1, 1981