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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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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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