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Simple English definitions for legal terms

true-value rule

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A quick definition of true-value rule:

The true-value rule is a rule that says when someone buys stock in a company, they have to pay the full price for it. This means they have to pay the amount the company says the stock is worth, either in money or something else of equal value. If the stock ends up being worth less than what was paid for it, the person who bought it is still responsible for paying the full price. This is important because it makes sure the company's books match up with its actual assets. If the true value is less than the price paid, the shareholder may be liable to creditors for the difference.

A more thorough explanation:

The true-value rule is a requirement that anyone who subscribes for and receives corporate stock must pay the par value for it, either in money or its equivalent. This ensures that a corporation's real assets match its books. If the true value is less than the par value, the stock is considered unpaid for to the full extent of the difference, and the shareholder is liable to creditors for the difference, regardless of the directors' good faith.

For example, if a person subscribes for 100 shares of stock with a par value of $10 per share, they must pay $1,000 for the stock. If the true value of the stock is only $8 per share, the shareholder is still liable for the full $1,000, and the difference of $200 is considered unpaid.

The true-value rule is important for maintaining the integrity of a corporation's financial records and protecting the interests of shareholders and creditors.

true value | trust account

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TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
18:48
true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
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