17-6710. Issuance of stock, bonds, securities and other obligations by corporation surviving or resulting from merger or consolidation.
17-6710
17-6710. Issuance of stock, bonds, securities and other obligations by
corporation surviving or resulting from merger or consolidation.
When two or more corporations are merged or consolidated, the
corporation surviving or resulting from the merger or consolidation may
issue bonds or other obligations, negotiable or otherwise, and with or
without coupons or interest certificates thereto attached, to an amount
sufficient with its capital stock to provide for all the payments it will
be required to make, or obligations it will be required to assume, in order
to effect the merger or consolidation. For the purpose of securing the
payment of any such bonds and obligations, it shall be lawful for the
surviving or resulting corporation to mortgage its corporate franchise,
rights, privileges and property, real, personal or mixed. The surviving or
resulting corporation may issue certificated or
uncertificated shares of its capital stock and other
securities to the stockholders of the constituent corporations in exchange
or payment for the original shares, in such amount as shall be necessary in
accordance with the terms of the agreement of merger or consolidation in
order to effect such merger or consolidation in the manner and on the terms
specified in the agreement.
History: L. 1972, ch. 52, § 88; L. 1973, ch. 100, § 8;
L. 1986, ch. 399, § 13; July 1.