The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
002
:
ISSUANCE OF SHARES
(Cite as: 11A V.S.A. § 6.20)
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§ 6.20. Subscription for shares before incorporation
(a) A subscription for shares entered into before incorporation is irrevocable for six
months unless the subscription agreement provides a longer or shorter period or all
the subscribers agree to revocation.
(b) The board of directors may determine the payment terms of subscriptions for shares
that were entered into before incorporation, unless the subscription agreement specifies
them. A call for payment by the board of directors must be uniform so far as practicable
as to all shares of the same class or series, unless the subscription agreement specifies
otherwise.
(c) Shares issued pursuant to subscriptions entered into before incorporation are fully
paid and nonassessable when the corporation receives the consideration specified in
the subscription agreement.
(d) If a subscriber defaults in payment of money or property under a subscription agreement
entered into before incorporation, the corporation may collect the amount owed as
any other debt. Alternatively, and unless the subscription agreement provides otherwise,
if the debt remains unpaid more than 20 days after the corporation sends written demand
for payment to the subscriber, the corporation may rescind the agreement.
(e) A subscription agreement entered into after incorporation is a contract between the
subscriber and the corporation subject to section 6.21 of this title. (Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)