Kirby subscribed to purchase 10,000 shares of stock to be issued by Globule Inc.,an existing corporation.Globule accepted the subscription.The price set forth in the subscription agreement was $10 per share.When the time came for Kirby to pay the amount of his subscription,Kirby paid only $6 per share,claiming that such amount represented the fair value of the shares.Globule delivered the stock certificates to Kirby for $6 per share.Is Kirby liable to Globule for the other $4 per share?

Question

Quizplus · Accepted Answer

If the shares are issued for less than the par or stated value, the stated capital of the corporation would exaggerate the actual value of the corporation. As a result, purchasers of shares are liable to the corporation when shares have been issued for less than the par or the stated value.

Kirby Subscribed to Purchase 10,000 Shares of Stock to Be