§ 2307 Share Certificate Statement Rules

This law says the new rules about what must be written on share certificates only apply to shares that are first issued after the law starts, while older shares keep following the old rules unless the company updates its articles and the share is transferred.

Key Takeaways

•New statement rules apply only to shares first issued after the law takes effect.
•Shares issued before the law keep using the old rules.
•A company can switch old shares to the new rules by amending its articles (Section 2302) and then transferring the certificate.

Example

A corporation that was already around when the law changed issues new stock in 2025. The new stock must have the statements required by Sections 417 and 418. The stock that the corporation issued back in 2020 does not have to follow those new statements unless the company files an amendment to its articles and the old certificate is later transferred.

The new shares follow the new writing rules right away. The old shares keep using the old rules unless the company changes its paperwork and the share changes hands.

Sections 417 and 418 of the new law relating to required statements on certificates representing shares apply to certificates representing shares of corporations existing on the effective date only if the shares are originally issued after the effective date, and the prior law shall continue to govern the certificates representing shares originally issued prior to the effective date, unless and until an amendment of the articles is filed pursuant to Section 2302, and the certificate is presented for transfer. (Amended by Stats. 1977, Ch. 235.)

Key Takeaways

•New statement rules apply only to shares first issued after the law takes effect.
•Shares issued before the law keep using the old rules.
•A company can switch old shares to the new rules by amending its articles (Section 2302) and then transferring the certificate.

Example

The new shares follow the new writing rules right away. The old shares keep using the old rules unless the company changes its paperwork and the share changes hands.

Key Takeaways

Example

Key Terms

References

§ 2307 Share Certificate Statement Rules

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References