Search OpenLegislation Statutes

This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Provisions as to certain proceedings
Business Corporation (BSC) CHAPTER 4, ARTICLE 8
§ 806. Provisions as to certain proceedings.

(a) The department of state shall not file a certificate of amendment
reviving the existence of a corporation unless the consent of the state
tax commission to the revival is delivered to the department. If the
name of the corporation being revived is not available under section 301
(Corporate name; general) for use by a corporation then being formed
under this chapter, the certificate of amendment shall change the name
to one which is available for such use.

(b) The following provisions shall apply to amendments and changes
under this article, except under section 808 (Reorganization under act
of congress):

(1) The stated capital in respect of any shares without par value
resulting from a change of issued shares shall be the amount of stated
capital in respect of the shares changed or, if such stated capital is
reduced by the amendment, the reduced amount stated in the certificate
of amendment. No corporation shall change issued shares into both shares
with par value and shares without par value unless the stated capital in
respect of the shares so changed or, if such stated capital is reduced
by the amendment, the reduced amount of stated capital stated in the
certificate of amendment, exceeds the par value of the shares with par
value resulting from such change; and the amount of such excess shall be
the stated capital in respect of the shares without par value resulting
from such change.

(2) No corporation shall increase the aggregate par value of its
issued shares with par value, unless, after giving effect to such
increase, the stated capital is at least equal to the amount required by
subparagraph (a) (12) of section 102 (Definitions).

(3) No reduction of stated capital shall be made by amendment unless
after such reduction the stated capital exceeds the aggregate
preferential amount payable upon involuntary liquidation upon all issued
shares having preferential rights in assets plus the par value of all
other issued shares with par value.

(4) Any changes that may be made in the relative rights, preferences
and limitations of the authorized shares of any class by any certificate
of amendment which does not eliminate such shares from authorized shares
or change them into shares of another class, shall not for the purpose
of any statute or rule of law effect an issue of a new class of shares.

(5) No amendment or change shall affect any existing cause of action
in favor of or against the corporation, or any pending suit to which it
shall be a party, or the existing rights of persons other than
shareholders; and in the event the corporate name shall be changed, no
suit brought by or against the corporation under its former name shall
abate for that reason.

(6) A holder of any adversely affected shares who does not vote for or
consent in writing to the taking of such action shall, subject to and by
complying with the provisions of section 623 (Procedure to enforce
shareholder's right to receive payment for shares), have the right to
dissent and to receive payment for such shares, if the certificate of
amendment (A) alters or abolishes any preferential right of such shares
having preferences; or (B) creates, alters or abolishes any provision or
right in respect of the redemption of such shares or any sinking fund
for the redemption or purchase of such shares; or (C) alters or
abolishes any preemptive right of such holder to acquire shares or other
securities; or (D) excludes or limits the right of such holder to vote
on any matter, except as such right may be limited by the voting rights
given to new shares then being authorized of any existing or new class.