Colorado § 7-42-105 - Right to purchase own stock.
Full text of Colorado Colorado Revised Statutes § 7-42-105 — Right to purchase own stock., with citation guidance and answers to common questions.
§ 7-42-105. Right to purchase own stock.
(1) It is lawful for any corporation owning any ditch or canal for conveying or reservoir for storing water for irrigation purposes for its stockholders to purchase and acquire any of its outstanding capital stock, but no purchase of or payment for its own shares shall be made at a time when the purchase or payment would make it insolvent.
(2) Any sale, exchange, lease, or other disposition of any part or all of the business, assets, property, or franchise of any such corporation to any conservancy district, irrigation district, or to the United States or any agency of the United States shall be deemed to be in the usual course of the corporation's business.
Source: L. 21: p. 212, § 1. C.L. § 2357. CSA: C. 41, § 145. CRS 53: § 31-14-5. C.R.S. 1963: § 31-14-5. L. 67: p. 312, § 1.
ANNOTATION
Corporation may validly purchase own shares in settling assessment dispute. Where, in settlement of an assessment dispute, a corporation accepts cash and the surrender of a stockholder's shares, such a transaction, properly carried out, is a valid purchase by the corporation of its own shares. Guadalupe Main Ditch Co. v. Mannassa Land & Irrigation Co., 104 Colo. 380, 91 P.2d 497 (1939).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 7-42-105
What does Colorado Revised Statutes § 7-42-105 cover?
Section 7-42-105 ("Right to purchase own stock.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 7-42-105?
A common citation format is "Colorado Revised Statutes § 7-42-105" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 7-42-105 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.