Eastern Oklahoma Television Corporation was incorporated to operate KTEN, a television station….

Eastern Oklahoma Television Corporation was incorporated to operate KTEN, a television station. Toassist the station’s start-up, Bill Hoover, an owner and operator of a radio station, pledged his radio station as collateral for KTEN’s obligations, personally guaranteed the new corporation’s obligations for the purchase of equipment, designed the television studio, planned operations, and hired and trained personnel. Hoover also became a director of the corporation. By action of the board of directors, the corporation issued some of the common shares to Hoover in consideration for his experience in broadcasting, his standing with the Federal Communications Commission, and his personal guarantee of the station’s debt. Has Hoover paid a proper type of consideration for the shares?

 

 

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