Section 64Sec./Art. 64

Liability of Directors for Watered Stocks. - A director or officer of a corporation who: (a) consents to the issuance of stocks for a consideration less than its par or issued value: (b) consents to the issuance of stocks for the consideration other than cash, valued in excess of its fair value; or (c) having knowledge of the insufficient consideration, does not file written objection with the corporate secretary, shall be liable to the corporation or its creditors, solidarily with the stockholder concerned for the differnce between the value receive at the time of issuance of the stock and the par or issued value of the same.