§ 1120 Bank Share Par Value

This law lets a bank change the face (par) value of any class of its shares whenever the board says it’s okay, unless the bank’s own rules already lock in a specific par value.

Key Takeaways

•A bank can adjust the par value of its shares whenever the board approves.
•The change can happen repeatedly over time.
•If the bank’s articles already fix a par value, the bank cannot change it without amending those articles.

Example

A bank wants to issue new shares at a lower price, so it asks its board to lower the par value of its common stock.

If the bank’s charter doesn’t already say the shares must stay at a set par value, the board can approve the change and the bank can reset the par value to the new lower amount.

A bank may, with the approval of its board, determine and from time to time redetermine the par value of any class or series of its shares unless its articles provide that such shares shall have par value and specify the par value of such shares. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law lets a bank change the face (par) value of any class of its shares whenever the board says it’s okay, unless the bank’s own rules already lock in a specific par value.

Key Takeaways

•A bank can adjust the par value of its shares whenever the board approves.
•The change can happen repeatedly over time.
•If the bank’s articles already fix a par value, the bank cannot change it without amending those articles.

Example

A bank wants to issue new shares at a lower price, so it asks its board to lower the par value of its common stock.

If the bank’s charter doesn’t already say the shares must stay at a set par value, the board can approve the change and the bank can reset the par value to the new lower amount.

Key Takeaways

Example

Key Terms

References

§ 1120 Bank Share Par Value

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References