Share rights and options.
R.I. Gen. Laws § 7-1.2-606
in effect7-1.2-606. Share rights and options.
Subject to any provisions in respect to rights and options stated in its articles
of incorporation, a corporation may create and issue, whether or not in connection
with the issuance and sale of any of its shares or other securities, rights or options
entitling the holders to purchase from the corporation shares of any class or classes.
Those rights or options are evidenced, and the recipients thereof designated, in any
manner that the board of directors approves and, subject to the provisions of the
articles of incorporation, shall state the terms upon which, the time or times within
which and the price or prices at which the shares may be purchased from the corporation
upon the exercise of any right or option. In the absence of fraud in the transaction,
the judgment of the board of directors as to the adequacy of the consideration received
for the rights or options is conclusive.
P.L. 2004, ch. 216, § 2; P.L. 2004, ch. 274, § 2.
Source: State of Rhode Island General Assembly (rilegislature.gov)URL: https://webserver.rilegislature.gov/Statutes/TITLE7/7-1.2/7-6/7-1.2-606.htmFetched: 10/20/2026