351.175. Subscriptions for shares--payment--failure to pay--notice for payment or forfeiture.
Subscriptions for shares--payment--failure to pay--notice forpayment or forfeiture.
351.175. 1. The board of directors shall have the power toaccept or reject subscriptions for shares whether made before orafter the organization of the corporation.
2. Unless otherwise provided in the subscription agreement,subscriptions for shares whether made before or after theorganization of a corporation shall be paid in full at such timeor in such installments and at such times as shall be determinedby the board of directors. Any call made by the board ofdirectors for payment on subscriptions shall be uniform as to allshares of the same class or as to all shares of the same seriesas the case may be. In case of default in payment of anyinstallment or call when such payment is due, the corporation mayproceed to collect the amount due in the same manner as any debtdue the corporation. The bylaws may provide penalties forfailure to pay installments or calls that may become due, but nopenalty working a forfeiture of his right to receive the sharesor of the amounts paid thereon shall be declared by the board ofdirectors against any shareholder until they shall have caused anotice in writing to be served on the shareholder personally, orby depositing the same in the United States mail addressed to theshareholder at his address as it appears on the records of thecorporation with postage thereon prepaid, stating that he isrequired to make such payment at the time and place specified insaid notice, and setting forth the nature and extent of theforfeiture which may result if he fails to make such payment,which notice must be served as aforesaid at least sixty daysprevious to the day on which such payment is required to be madeto avoid such forfeiture.
(L. 1943 p. 410 § 14, A.L. 1975 S.B. 14, A.L. 1979 S.B. 216)