(a)(1) The consideration paid for the issuance of shares shall consist of money paid, labor done, or property actually received.(2) Shares may not be issued until the full amount of the consideration, fixed as provided by law, has been paid.(3) When payment of the consideration for which the shares are to be issued shall have been received by the corporation, the shares shall be deemed to be fully paid and nonassessable.(b) Neither promissory notes nor the promise of future services shall constitute payment or part payment for shares of a corporation.(c) In the absence of fraud in the transaction, the judgment of the board of directors or the shareholders, as the case may be, as to the value of the consideration received for shares shall be conclusive.Acts 1965, No. 576, § 20; A.S.A. 1947, § 64-205.
Arkansas Legal Code