Sec. 306. (1) Unless otherwise provided in the subscription agreement: (a) A subscription for shares made before or after organization of a corporation shall be paid in full at the time, or in installments and at the times, as shall be determined by the board. (b) A call made by the board for payment on subscriptions shall be ratable as to all shares of the same class or as to all shares of the same series. (c) A corporation may retain a security interest in any shares as security for performance by the subscriber of his or her obligations under a subscription agreement and subject to the power of sale or rescission upon default provided in section 307.
Mich. Comp. Laws § 450.1306
Subscription for shares; payment; call; security interest
Applied in 2 court decisions — leading case 401 F. Supp. 26 - Rare Earth, Inc. v. Hoorelbeke (1975)
Most recently applied in 200 Mich. App. 162 - Huspen v. T & H, Inc (June 1993)
1972, Act 284, Eff
Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.