Sec. 21.166. PREFORMATION SUBSCRIPTION. (a) The corporation may determine the payment terms of a preformation subscription unless the payment terms are specified by the subscription. The payment terms may authorize payment in full on acceptance or by installments.
(b) Unless the subscription provides otherwise, a corporation shall make calls placed to all subscribers of similar interests for payment on preformation subscriptions uniform as far as practicable.
(c) After the corporation is formed, if a subscriber fails to pay any installment or call when due, a corporation may:
(1) collect in the same manner as any other debt the amount due on any unpaid preformation subscription; or
(2) forfeit the subscription if the installment or call remains unpaid for 20 days after written notice to the subscriber.
(d) Although the forfeiture of a subscription terminates all the rights and obligations of the subscriber, the corporation may retain any amount previously paid on the subscription.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 21 - For-Profit Corporations
Subchapter D. Shares, Options, and Convertible Securities
Section 21.151. Number of Authorized Shares
Section 21.152. Classes and Series of Shares
Section 21.153. Designations, Preferences, Limitations, and Rights of a Class or Series
Section 21.154. Certain Optional Characteristics of Shares
Section 21.155. Series of Shares Established by Board of Directors
Section 21.156. Actions With Respect to Series of Shares
Section 21.157. Issuance of Shares
Section 21.158. Issuance of Shares Under Plan of Merger or Conversion
Section 21.159. Types of Consideration for Shares
Section 21.160. Determination of Consideration for Shares
Section 21.161. Amount of Consideration for Issuance of Certain Shares
Section 21.162. Value and Sufficiency of Consideration
Section 21.163. Issuance and Disposition of Fractional Shares or Scrip
Section 21.164. Rights of Holders of Fractional Shares or Scrip
Section 21.166. Preformation Subscription
Section 21.167. Commitment to Purchase Shares
Section 21.168. Stock Rights, Options, and Convertible Indebtedness
Section 21.169. Terms and Conditions of Rights and Options
Section 21.170. Consideration for Rights, Options, and Convertible Indebtedness
Section 21.171. Outstanding or Treasury Shares
Section 21.172. Expenses of Organization, Reorganization, and Financing of Corporation