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XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for a total authorized capital of $100,000, consisting of one thousand shares of common stock with a par value of $100 per share.
The corporation issues for cash a total of fifty certificates, numbered one to fifty inclusive, representing various amounts of shares in the names of various individuals. The shares were all paid for in advance, so the certificates are all dated and mailed on the same day.
The fifty certificates of stock represent a total of 1,050 shares. Certificate number fortynine for thirty shares was issued to Jane Smith. Certificate number fifty for twenty-five shares was issued to William Jones. Is there any question concerning the validity of any of the stock thus issued? What are the rights of Smith and Jones?
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