16-10a-620 - Subscriptions for shares. - Utah Statutes

16-10a-620. Subscriptions for shares.
(1) A subscription for shares entered into before incorporation is irrevocable for sixmonths unless the subscription agreement provides a longer or shorter period or all thesubscribers agree or the corporation consents to revocation of the subscription and provided thesubscription is not considered revocable under the federal securities laws.
(2) The acceptance by the corporation of a subscription entered into before incorporationand the authorization of the issuance of shares pursuant thereto are subject to Section16-10a-621.
(3) The board of directors may determine the payment terms of subscriptions for sharesthat were entered into before incorporation, unless the subscription agreement specifies them. Acall for payment by the board of directors shall be uniform so far as practicable as to all shares ofthe same class or series, unless the subscription agreement specifies otherwise.
(4) Shares issued pursuant to subscriptions entered into before incorporation are fullypaid and nonassessable when the corporation receives the consideration specified in thesubscription agreement.
(5) If a subscriber defaults in payment of money or property under a subscriptionagreement entered into before incorporation, the corporation may collect the amount owed as anyother debt. Alternatively, unless the subscription agreement provides otherwise, the corporationmay rescind the agreement and may sell the shares if the debt remains unpaid more than 20 daysafter the corporation sends written demand for payment to the subscriber.
(6) A subscription agreement entered into after incorporation is a contract between thesubscriber and the corporation subject to Section 16-10a-621.

Amended by Chapter 378, 2010 General Session