Massachusetts General Laws ch. 166 sec. 6 – Improper issue; penalty
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Section 6. A director, treasurer or other officer or agent of any such company who knowingly votes to authorize the issue of, or knowingly signs, certifies or issues, stock or bonds contrary to section four, or who knowingly votes to authorize the application, or knowingly applies the proceeds, of such stock or bonds contrary to said section, or who knowingly votes to assume or incur, or knowingly assumes or incurs in the name or behalf of such corporation, any debt or liability except for the legitimate purposes of the corporation shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.
Terms Used In Massachusetts General Laws ch. 166 sec. 6
- 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.