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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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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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