§ 25-8-210. Overissue. - North Carolina Statutes

§25‑8‑210.  Overissue.

(a)        In this section,"overissue" means the issue of securities in excess of the amount theissuer has corporate power to issue, but an overissue does not occur ifappropriate action has cured the overissue.

(b)        Except as otherwiseprovided in subsections (c) and (d) of this section, the provisions of thisArticle which validate a security or compel its issue or reissue do not applyto the extent that validation, issue, or reissue would result in overissue.

(c)        If an identicalsecurity not constituting an overissue is reasonably available for purchase, aperson entitled to issue or validation may compel the issuer to purchase thesecurity and deliver it if certificated or register its transfer ifuncertificated, against surrender of any security certificate the person holds.

(d)        If a security isnot reasonably available for purchase, a person entitled to issue or validationmay recover from the issuer the price the person or the last purchaser forvalue paid for it with interest from the date of the person's demand. (1997‑181,s. 1.)