Indiana § 28-13-2-1 - Subscription for shares; terms; call for payment; nonassessable shares; default in payment
Full text of Indiana Indiana Code § 28-13-2-1 — Subscription for shares; terms; call for payment; nonassessable shares; default in payment, with citation guidance and answers to common questions.
§ 28-13-2-1. Subscription for shares; terms; call for payment; nonassessable shares; default in payment
Sec. 1. (a) A subscription for shares entered into before incorporation is irrevocable for six (6) months unless the subscription agreement provides a longer or shorter period or all the subscribers agree to revocation.
(b) The board of directors may determine the payment terms of subscriptions for shares that were entered into before incorporation, unless the subscription agreement specifies terms. A call for payment by the board of directors must be uniform as far as practicable as to all shares of the same class or series, unless the subscription agreement specifies otherwise.
(c) Shares issued under subscriptions entered into before incorporation are fully paid and nonassessable when the corporation receives the consideration specified in the subscription agreement.
(d) If a subscriber defaults in payment of money or property under a subscription agreement entered into before incorporation, the corporation may collect the amount owed as any other debt. Alternatively, unless the subscription agreement provides otherwise, the corporation may rescind the agreement and may sell the shares if the debt remains unpaid more than twenty (20) days after the corporation sends written demand for payment to the subscriber.
As added by P.L.14-1992, SEC.163.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 28-13-2-1
What does Indiana Code § 28-13-2-1 cover?
Section 28-13-2-1 ("Subscription for shares; terms; call for payment; nonassessable shares; default in payment") is part of the Indiana Code, the codified statutory law of Indiana. 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 Indiana § 28-13-2-1?
A common citation format is "Indiana Code § 28-13-2-1" (Indiana). 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 Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 28-13-2-1 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana 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 Indiana.