What is the typical liability of a purchasing shareholder when par stock is issued for less than par value?

When a shareholder purchases par stock for less than its par value, they are typically liable for the full consideration of their shares. Par value represents the minimum legal value assigned to a share of stock by the corporation's charter. This means that shareholders are generally expected to pay at least this amount when acquiring shares.

If a shareholder pays less than the par value, the corporation can pursue the shareholder for the difference. This is particularly important for maintaining the integrity of the corporation's capital structure, as the par value reflects the company's stated equity and contributes to maintaining the initial capital needed for operations.

In essence, the law provides that shareholders who purchase par stock are responsible for the entirety of the agreed-upon purchase price, ensuring that the corporation receives the full value intended to be raised through the issuance of the shares, regardless of any lower purchase price initially negotiated.