Ohio § 1701.21
Full text of Ohio Ohio Revised Code § 1701.21, with citation guidance and answers to common questions.
§ 1701.21.
(A) By the express terms of shares of any class or series, such shares may be convertible
into the same or a different number of shares of any other class or series. Such express terms may contain any statements not repugnant to law for the protection
of such conversion rights, including, without limiting the generality of such authority:
restrictions upon the authorization or issuance of additional shares; provisions
for the adjustment of the conversion price or ratio; provisions concerning rights
in the event of reorganization, merger, consolidation, or lease, sale, exchange, transfer
or other disposition of all, or substantially all, of the assets of the corporation;
provisions for the reservation of authorized but unissued shares to satisfy such
conversion rights; and restrictions upon the declaration or payment of dividends
or distributions. Such express terms may also include statements, not inconsistent with the provisions
of section 1701.30 of the Revised Code , to provide that upon the exercise of conversion rights the stated capital of the
corporation shall be created, increased, reduced, or eliminated in the manner, at
the rate, or to the extent provided therein. (B) The corporation shall not issue any shares, with or without par value, which are
convertible into shares having an aggregate par value greater than the aggregate stated
capital of such convertible shares unless in each case immediately after the issuing
of any of the convertible shares the corporation will have a surplus not less in amount
than the excess of the aggregate par value of all the shares into which such convertible
shares may be converted over the aggregate stated capital of all the outstanding convertible
shares; and during the entire period that such conversion rights may be exercised,
the corporation shall reserve from its surplus, solely for transfer to stated capital
upon the exercise of such conversion rights, an amount equal at the time to the excess
of the aggregate par value of all the shares into which the then outstanding convertible
shares may be converted over the aggregate stated capital of such convertible shares;
provided that the failure or inability of the corporation to maintain such reserve
shall not affect the conversion rights of any outstanding convertible shares.
Frequently Asked Questions About Ohio § 1701.21
What does Ohio Revised Code § 1701.21 cover?
Section 1701.21 is part of the Ohio Revised Code, the codified statutory law of Ohio. 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 Ohio § 1701.21?
A common citation format is "Ohio Revised Code § 1701.21" (Ohio). 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 Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 1701.21 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio 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 Ohio.