{"data":{"id":"us-ky/krs-279.100","jurisdiction":"us-ky","citation":"KRS 279.100","heading":"Common and preferred stock -- Ownership and transfer.","body":"(1) Only a member of a corporation organized under this chapter may own its common\nstock, and neither the common stock in any such corporation nor any interest therein\nshall be transferable or assignable, either by act of the parties or by operation of law,\nto any person who is not eligible to be a member of the corporation.\n(2) No corporation formed under this chapter shall issue common stock to a member\nuntil it has been fully paid for, but the promissory notes of a member may be\naccepted by the corporation a s full or partial payment. The corporation shall hold\nthe stock as security for the payment of the note, but such retention as security shall\nnot affect the member's right to vote.\n(3) No person, other than a corporation formed under this chapter, shall at  any one time\nown more than five percent (5%) of the outstanding common stock of any\ncorporation formed under this chapter.\n(4) Any such corporation may at any time, as specified in its bylaws, except when the\ndebts of the corporation exceed fifty percent (50%) of its assets, buy in or purchase\nits common stock at the book value thereof, as conclusively determined by its board\nof directors, and pay for it in cash within one (1) year thereafter.\n(5) Preferred stock may be owned by and transferred to any pers on, and may be made\nredeemable and retirable by the corporation on such terms and conditions as are\nprovided for in the articles of incorporation and printed on the face of each\ncertificate. Ownership of preferred stock shall not confer on the holder any r ight to\nvote.","path":["KRS Chapter 279"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14193","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"b7a3d3cdbc9f130e150fe967559af58edf42636f463552626aa838e8c77ec5b7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-279.095","next":"us-ky/krs-279.110"},"notice":"GroundRules: Original legal text. Not legal advice."}