Michigan Laws 450.1304 – Convertible shares and bonds; conditions to issuance; disposition of convertible bonds or shares
Current as of: 2024 | Check for updates
|
Other versions
(1) Bonds or shares convertible into shares of a corporation shall not be issued unless 1 of the following conditions is satisfied:
(a) A sufficient number of authorized but unissued shares of the appropriate class or series are reserved by the board to be issued only in satisfaction of the conversion privileges of the convertible bonds or shares when issued.
Terms Used In Michigan Laws 450.1304
- 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.
(b) The aggregate conversion privileges of the convertible bonds or shares when issued do not exceed the aggregate of any shares reserved under subdivision (a) and any additional shares which may be authorized by the board under subsection (3) of section 303.
(2) Bonds which have been converted shall be canceled. Shares which have been converted shall be restored to the status of authorized but unissued shares, unless otherwise provided in the articles of incorporation.