{"data":{"id":"us-ky/krs-279.430","jurisdiction":"us-ky","citation":"KRS 279.430","heading":"Common and preferred stock -- Ownership and transfer.","body":"(1) Only a member of a corporation organized under KRS 279.310 to 279.600 may own\nits common stock, and neither the common stock in any such corporation or any\ninterest therein shall be transferable or assignable, except as security for a loan from\nthe federal government, either by act of the parties or by operation of law, to any\nperson who is not eligible to be a member of the corporation.\n(2) No corporation formed under KRS 279.310 to 279.600 shall issue common stock to\na member until it has been fully paid for, but the promissory notes of a member may\nbe accepted by the corporation as 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 KRS 279.310 to 279.600, shall at\nany one (1) time own more than five percent (5%) of the outstanding common stock\nof any corporation formed under KRS 279.310 to 279.600.\n(4) No corporation formed under KRS 279.310 to 279.600 shall pay dividends on either\nits common stock or its preferred stock in an amount greater than four percent (4%)\nper annum on each class of stock.\n(5) Any such corporation may at any time, as specified in its bylaws, except when t he\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(6) Preferred stock may be owned by and transferred to any person, 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 pre ferred stock shall not confer on the holder any right to\nvote.","path":["KRS Chapter 279"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14219","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"d9a68922d85bd7a6a5832b531ac6fb21391ad89591f40c24902025354350cf0a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-279.420","next":"us-ky/krs-279.440"},"notice":"GroundRules: Original legal text. Not legal advice."}