Section XI Section 7

Constitution

Effective - 27 Feb 1945, see footnote   

  XI Section 7.  Consideration for corporate stock and debts — fictitious issues — antecedent debts — increases of stock or bonds — issuance of preferred stock. — No corporation shall issue stock, or bonds or other obligations for the payment of money, except for money paid, labor done or property actually received; and all fictitious issues or increases of stock or indebtedness shall be void; provided, that no such issue or increase made for valid bona fide antecedent debts shall be deemed fictitious or void.  The stock or bonded indebtedness of corporations shall not be increased nor shall preferred stock be issued, except according to general law.

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Source: Const. of 1875, Art. XII, §§ 8, 10.

(1966) In the absence of actual fraud in the sale of shares to officers and key employees of corporation under stock option plan, the judgment of the board of directors as to the value of the consid- eration received for the shares will not be interfered with. Saigh v. Busch (Mo.), 403 S.W.2d 559.