485.112 Subscriptions; calling in; sale, procedure, purchaser's rights.

290 words·~1 min read·/mi/chapter-485/485-112

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Sec. 12.

The directors may call in subscriptions to the capital stock of such corporation by installments, in such portions, and at such times and places as they shall think proper, by giving notice thereof as the by-laws shall prescribe; and in case any stockholder shall neglect or refuse payment of any such installment for the space of 60 days after the same shall become due and payable, and after he shall have been notified thereof, the stock of such delinquent stockholder may be sold by the directors at public auction, at the office of the secretary of the corporation, giving at least 30 days' notice in some newspaper published in the county:

Provided, That if said stockholder shall reside in this state, the stock shall be sold at the business office of said corporation, in the county in which they are doing business, giving at least 30 days' notice thereof in some newspaper published in the county; if no newspaper be published in the county in which such corporation transacts their business, then it shall be published in the newspaper in the city of Detroit which shall have at the time the largest circulation; and the proceeds of such sale shall be first applied in payment of the installment called for, and the expenses on the same, and the residue shall be refunded to the owner thereof; and such sale shall entitle the purchaser to all the rights of a stockholder, to the extent of the shares so bought.

History: 1869, Act 149, Imd. Eff. Apr. 5, 1869 ;-- CL 1871, 2727 ;-- How. 3856 ;-- CL 1897, 6732 ;-- CL 1915, 8833 ;-- CL 1929, 11768 ;-- CL 1948, 485.112