QuestionMay 28, 2025

A person who performs services for a corporation in exchange for stock cannot be treated as a member of the transferring group even if that person also transfers some property to the corporation. True False

A person who performs services for a corporation in exchange for stock cannot be treated as a member of the transferring group even if that person also transfers some property to the corporation. True False
A person who performs services for a corporation in exchange for stock cannot be treated as a member of the transferring group even if that person also transfers some property to
the corporation.
True
False

Solution
4.1(304 votes)

Answer

True Explanation In corporate law, a person providing services in exchange for stock is typically not considered part of the transferring group unless they also contribute property. The distinction lies in the nature of the contribution—services alone do not qualify one as a member of the group.

Explanation

In corporate law, a person providing services in exchange for stock is typically not considered part of the transferring group unless they also contribute property. The distinction lies in the nature of the contribution—services alone do not qualify one as a member of the group.
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