Chap. 553.—An ACT to amend and re-enact section 3788 as heretofore amended
by an act approved March 24, 1922, in relation to subscriptions to capital
stock. [S B 228]

Approved March 29, 1926.

1. Beit enacted by the general assembly of Virginia, That section
thirty-seven hundred and eighty-eight of the Code of Virginia as here-
tofore amended by an act approved March twenty-fourth, nineteen
hundred and twenty-two, be amended and re-enacted so as to read as
follows:

Section 3788. How subscriptions to capital stock may be paid;
liability of subscriber; financial organization and disposition of stock;
statement to be filed with the commission; penalty.—Subscriptions
to the capital stock of any corporation may be paid in money, land,
or other property, real or personal, leases, options, mines, minerals,
mineral rights, patent rights, rights of way, or other rights or ease-
ments, contracts, labor, or services; and there shall be no individual
or personal liability on any subscriber beyond the obligation to
comply with such terms as he may have agreed to in his contract of
subscription; and any corporation may adopt such plan of financial
organization and may dispose of its stock or bonds for the purposes of
the corporation at such prices, for such consideration, and on such
terms and conditions as it sees fit; but, before making any issue of its
stock or bonds it shall file with the State corporation commission a
statement (verified by oath of the president or secretary of the cor-
poration, and in such form as may be prescribed or permitted by the
commission), setting forth fully and accurately the basis or financial
plan upon which such stock and bonds are to be issued; and where
such basis or plan includes services or property (other than money)
received or to be received by the corporation, such statement shall
accurately specify and describe in the manner prescribed or permitted
by the commission the services and property, together with the valua-
tion at which the same are received, or to be received, and the judg-
ment of the directors as to the value of such land or other property,
real or personal, leases, options, mines, mineral rights, patent rights,
rights of way, or other rights or easements, contracts, labor, or ser-
vices in the absence of fraud, participated in by both parties to the
transaction, shall be conclusive.

For any violation of this section the offending corporation shall be
liable to a fine of not less than ten nor more than one thousand dollars,
to be imposed and judgment entered therefor by the State corporation
commission, and shall be enforced by its process.