Expenses of organization, reorganization and financing.

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The reasonable charges and expenses of organization or reorganization of a corporation, and the reasonable expenses of and compensation for the sale or underwriting of its shares, may be paid or allowed by the corporation, either out of the consideration received by it in payment for its shares, or by issuance of its shares, without thereby rendering the shares not fully paid.

History: 1953 Comp., § 51-24-21, enacted by Laws 1967, ch. 81, § 21; 1983, ch. 304, § 32.

ANNOTATIONS

Compiler's notes. — This section is derived from Section 22 of the ABA Model Business Corporation Act.

The 1983 amendment, effective June 17, 1983, deleted "or assessable" at the end of the section.


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