1. (a) The issuance of new shares at an inadequate price operates to dilute the value of outstanding shares.
2. (b) Therefore, even when the shareholders agree that shares may be sold free of preemptive rights the directors are under a fiduciary duty to fix a reasonable price for the shares thus sold.

Codification Notes: This section was promulgated as Section 48-311.2 of the State Bank Department Rules prior to codification into the Code of Arkansas Rules. This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Reference A.C.A. § 23-48-311)"