17-6402.   Consideration for issuance ofstock.The consideration, as determined pursuant to subsections (a) and (b) of K.S.A.17-6403, and amendments thereto, for subscriptions to, or the purchase of, thecapital stock to be issued by a corporation shall be paid in such form and insuch manner as the board of directors shall determine. In the absence of actualfraud in the transaction, the judgment of the directors as to the value of suchconsideration shall be conclusive. The board of directors may authorize sharesto be issued for consideration consisting of any tangible or intangibleproperty or benefit to the corporation including cash, promissory notes,services performed, contracts for services to be performed or other securitiesof the corporation. Before the corporation issues shares, the board ofdirectors must determine that the consideration received or to be received forshares to be issued is adequate. That determination by the board of directorsis conclusive as to the adequacy of consideration for the issuance of shares.The capital stock so issued shall be deemed to be fully paid and nonassessablestock if: (a) The entire amount of such consideration has been received by thecorporation in the form of cash, services rendered, personal property, realproperty, leases of real property, or a combination thereof or forms authorizedby the board of directors; or (b) not less than the amount of the considerationdetermined to be capital pursuant to K.S.A. 17-6404, and amendments thereto,has been received by the corporation in the form or forms authorized by theboard of directors and the corporation has received a binding obligation of thesubscriber or purchaser to pay the balance of the subscription or purchaseprice; provided, however, nothing contained herein shall prevent the board ofdirectors from issuing partly paid shares under K.S.A. 17-6406,and amendments thereto.

      History:   L. 1972, ch. 52, § 29;L. 1988, ch. 99, § 10;Revived and amend., L. 1988, ch. 100, § 10;L. 2004, ch. 143, § 13; Jan. 1, 2005.