Under the Model Business Corporation Act,a corporation may not issue its shares in return for any benefit to the corporation.

Question

Quizplus · Accepted Answer

The MBCA permits shares to be issued in return for any tangible or intangible property or benefit to the corporation,including cash,promissory notes,services performed for the corporation,contracts for services to be performed for the corporation,and securities of the corporation or another corporation.

Under the Model Business Corporation Act,a Corporation May Not Issue