14A:7-5. Payment for shares; nonassessability
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/nj/title-14a/chapter-7/14a-7-5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Subject to any restrictions contained in the certificate of incorporation, the consideration for the issuance of shares may be paid, in whole or in part, in:
(a)money,
(b)real property,(c) tangible or intangible personal property, including stock of another corporation, and obligations of the subscriber or of another person, whether secured or unsecured,
(d)labor or services actually performed for the corporation or in its formation, or
(e)labor or services to be performed in the future for the corporation. A new employee's termination of employment with a prior employer or the employee's acceptance of employment with the corporation is adequate consideration for the issuance of shares.
(2)When payment of the full consideration for which shares are to be issued is made, the subscriber shall thereupon become entitled to all the rights and privileges of a holder of such shares, including the registration in his name of a certificate representing them, and such shares shall be fully paid and nonassessable.
L.1968, c.350; amended 1973,c.366,s.32; 1988,c.94,s.37.