23 CAR § 320-1802

23 CAR § 320-1802. Discriminatory sales of stock

Length: 51 wordsOfficial source
(a) The issuance of new shares at an inadequate price operates to dilute the value of outstanding shares. (b) Therefore, even when the shareholders agree that shares may be sold free of preemptive rights the directors are under a fiduciary duty to fix a reasonable price for the shares thus sold.
23 CAR § 320-1802: 23 CAR § 320-1802. Discriminatory sales of stock | Justis AI