279.100 Common and preferred stock -- Ownership and transfer.
275 words·~1 min read·
/ky/chapter-279/279-100A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Only a member of a corporation organized under this chapter may own its common
stock, and neither the common stock in any such corporation nor any interest therein
shall be transferable or assignable, either by act of the parties or by operation of law,
to any person who is not eligible to be a member of the corporation.
(2)No corporation formed under this chapter shall issue common stock to a member
until it has been fully paid for, but the promissory notes of a member may be
accepted by the corporation as full or partial payment. The corporation shall hold
the stock as security for the payment of the note, but such retention as security shall
not affect the member's right to vote.
(3)No person, other than a corporation formed under this chapter, shall at any one time
own more than five percent (5%) of the outstanding common stock of any
corporation formed under this chapter.
(4)Any such corporation may at any time, as specified in its bylaws, except when the
debts of the corporation exceed fifty percent (50%) of its assets, buy in or purchase
its common stock at the book value thereof, as conclusively determined by its board
of directors, and pay for it in cash within one
(1)year thereafter.
(5)Preferred stock may be owned by and transferred to any person, and may be made
redeemable and retirable by the corporation on such terms and conditions as are
provided for in the articles of incorporation and printed on the face of each
certificate. Ownership of preferred stock shall not confer on the holder any right to
vote.