611.32 Promoter stock.

193 words·~1 min read·/wi/chapter-611/611-32-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Mandatory purchase. During the period of effectiveness of the organization permit the incorporators, directors, and principal officers of a stock corporation shall among themselves subscribe and pay, at the public offering price, at least $100,000 in cash or in property of equivalent value approved by the commissioner, for shares offered by the corporation under the organization permit.

(2)Restrictions on issuance.

(a)No person may subscribe for promoter stock on terms more favorable than those on which subscriptions are being solicited from the general public.

(b)Except under this section and s. 611.18

(a)2. , and except for stock dividends, no promoter stock may be issued for 5 years following the initial issuance of the certificate of authority, without the approval of the commissioner which may be granted by the commissioner only if he or she finds that:

1. The corporation is in need of additional capital; and

2. The value proposed to be given for the stock is fair to existing shareholders and has a reasonable relation to the current value of the outstanding shares.

(c)This subsection shall not affect the exercise of preemptive rights.