Tex. Bus. Orgs. Code § 21.161 · Subchapter D. SHARES, OPTIONS, AND CONVERTIBLE SECURITIES
AMOUNT OF CONSIDERATION FOR ISSUANCE OF CERTAIN SHARES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm
- Text hash
- sha256 910f08543398ea9b26f56340c41f50c57a60e5df084f95e26c8c337496957f58
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 2 provisions
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 21.161. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.