Arizona Laws 10-620. Subscription for shares
A. A subscription for shares entered into before incorporation is irrevocable by the subscriber for a period of six months from the date of the subscription agreement, unless the subscription agreement provides a longer or shorter period or all of the subscribers agree to revocation.
Terms Used In Arizona Laws 10-620
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Address: means a mailing address. See Arizona Laws 10-140
- Board of directors: means the group of persons vested with the management of the affairs of the corporation irrespective of the name by which the group is designated and includes the governing body or bodies of a water users' association if the articles of incorporation of the water users' association provide for a governing body or bodies denominated other than as a board of directors. See Arizona Laws 10-140
- Class: refers to a group of memberships that have the same rights with respect to voting, dissolution, redemption and transfer. See Arizona Laws 10-3140
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Property: includes both real and personal property. See Arizona Laws 1-215
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Shares: means the units into which the proprietary interests in a corporation are divided. See Arizona Laws 10-140
- Subscriber: means a person who subscribes for shares in a corporation, whether before or after incorporation. See Arizona Laws 10-140
- subscription: includes a mark, if a person cannot write, with the person's name written near it and witnessed by a person who writes the person's own name as witness. See Arizona Laws 1-215
- Writing: includes printing. See Arizona Laws 1-215
- written: includes blockchain technology as defined in section 44-7061. See Arizona Laws 10-140
B. The board of directors may determine the payment terms of subscriptions for shares, unless the subscription agreement specifies them. Any call made by the board of directors for payment on subscriptions shall be uniform as far as practicable as to all shares of the same class or series, unless the subscription agreement specifies otherwise.
C. Shares issued pursuant to subscriptions entered into before incorporation shall be fully paid and nonassessable when the corporation receives the consideration specified in the subscription agreement.
D. If a subscriber defaults in the payment of money or property when due under a subscription agreement, the corporation may collect the amount due in the same manner as any other debt. The subscription agreement may prescribe other penalties for failure to pay installments or calls that may become due, except that no penalty working a rescission or forfeiture of a subscription or of the amounts paid on a subscription may be declared as against any subscriber unless the subscriber fails to cure the default within twenty days after the corporation sends written notice of the default to the subscriber at his last known address. Subject to the foregoing, the board of directors may release, settle or compromise, on such terms and conditions as it deems appropriate, any subscription for shares or any dispute or action arising out of a subscription for shares, unless the subscription agreement provides otherwise.
E. A subscription for shares, whether entered into before or after incorporation, is not enforceable unless it is in writing and signed by the party to be charged or his agent.