Massachusetts General Laws ch. 166 sec. 10 – Effect of issue of stock or scrip before payment for shares; liability of directors
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Section 10. All certificates of stock or scrip issued in violation of the preceding section shall be void; and the directors of the corporation which issues them shall be liable to a penalty of one thousand dollars each, to be recovered by indictment in any county where any of them reside; but if any such director proves that, before such issue, he filed his written dissent thereto with the clerk, or was absent and at no time voted therefor, he shall not be so liable.
Terms Used In Massachusetts General Laws ch. 166 sec. 10
- 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.
- Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.