Tex. Business Organizations Code § 21.161
This is the official text of Tex. Business Organizations Code § 21.161, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 21.161. AMOUNT OF CONSIDERATION FOR ISSUANCE OF CERTAIN SHARES.
Official statutory text
(a) Consideration to be received by a corporation for the issuance of shares with par value may not be less than the par value of the shares.
(b) The part of the surplus of a corporation that is transferred to stated capital on the issuance of shares as a share distribution is considered to be the consideration for the issuance of those shares.
(c) The consideration received by a corporation for the issuance of shares on the conversion or exchange of its indebtedness or shares is:
(1) the principal of, and accrued interest on, the indebtedness exchanged or converted, or the stated capital on the issuance of the shares;
(2) the part of surplus, if any, transferred to stated capital on the issuance of the shares; and
(3) any additional consideration paid to the corporation on the issuance of the shares.
(d) The consideration received by a corporation for the issuance of shares on the exercise of rights or options is:
(1) any consideration received by the corporation for the rights or options; and
(2) any consideration received by the corporation for the issuance of shares on the exercise of the rights or options.
(b) The part of the surplus of a corporation that is transferred to stated capital on the issuance of shares as a share distribution is considered to be the consideration for the issuance of those shares.
(c) The consideration received by a corporation for the issuance of shares on the conversion or exchange of its indebtedness or shares is:
(1) the principal of, and accrued interest on, the indebtedness exchanged or converted, or the stated capital on the issuance of the shares;
(2) the part of surplus, if any, transferred to stated capital on the issuance of the shares; and
(3) any additional consideration paid to the corporation on the issuance of the shares.
(d) The consideration received by a corporation for the issuance of shares on the exercise of rights or options is:
(1) any consideration received by the corporation for the rights or options; and
(2) any consideration received by the corporation for the issuance of shares on the exercise of the rights or options.
Status: in_force · Read it on the official government site
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