§ 7-1.2-606 - Share rights and options.
SECTION 7-1.2-606
§ 7-1.2-606 Share rights and options.– Subject to any provisions in respect to rights and options stated in itsarticles of incorporation, a corporation may create and issue, whether or notin connection with the issuance and sale of any of its shares or othersecurities, rights or options entitling the holders to purchase from thecorporation shares of any class or classes. Those rights or options areevidenced, and the recipients thereof designated, in any manner that the boardof directors approves and, subject to the provisions of the articles ofincorporation, shall state the terms upon which, the time or times within whichand the price or prices at which the shares may be purchased from thecorporation upon the exercise of any right or option. In the absence of fraudin the transaction, the judgment of the board of directors as to the adequacyof the consideration received for the rights or options is conclusive.