13.1-304 - Purchase of business by issue of shares of stock. - Virginia Statutes

§ 13.1-304. Purchase of business by issue of shares of stock.

Whenever any stock cooperative association shall purchase the business ofanother association, person or persons, it may pay for the same in whole orin part by issuing to the selling association or person shares of its capitalstock to an amount which at par value would equal the fair market value ofthe business so purchased, and in such case the transfer to the associationof such business at such valuation shall be equivalent to payment in cash forthe shares of stock so issued. In case the cash value of such purchasedbusiness exceeds $1,000 the directors of the association are authorized tohold the shares in excess of $1,000 in trust for the vendor and dispose ofthe same to such persons and within such time, as may be mutuallysatisfactory to the parties in interest, and to pay the proceeds thereof ascurrently received to the former owners of such business.

(Code 1950, § 13-241; 1956, c. 428; 1994, c. 217.)