351.390. Corporation's powers to purchase, hold, transfer or dispose of its own shares. - Missouri Statutes

Corporation's powers to purchase, hold, transfer or dispose of itsown shares.

351.390. A corporation shall have power to purchase, take,receive, or otherwise acquire, hold, own, pledge, transfer, orotherwise dispose of its own shares; provided, that it shall notpurchase, either directly or indirectly, its own shares when itsnet assets are less than its stated capital, or when by so doingits net assets would be reduced below its stated capital.Notwithstanding the foregoing limitation, a corporation maypurchase its own shares for the purpose of:

(1) Eliminating fractional shares;

(2) Collecting or compromising claims of the corporation, orsecuring any indebtedness to the corporation previously incurred;

(3) Paying dissenting shareholders entitled to payment fortheir shares in the event of a merger or consolidation or a saleor exchange of assets;

(4) Effecting, subject to the other provisions of thischapter, the retirement of its redeemable shares by redemption orby purchase at not to exceed the redemption price.

(L. 1943 p. 410 § 5)

(1969) A corporation's purchase of its own stock with stockholder assent and approval where no creditors have any rights against the corporation does not violate this section. Hawkins v. Mall, Inc. (Mo.), 444 S.W.2d 369.