Texas Statutes (Last Updated: January 4, 2014) |
BUSINESS ORGANIZATIONS CODE |
Title 2. CORPORATIONS |
Chapter 21. FOR-PROFIT CORPORATIONS |
Subchapter G. DISTRIBUTIONS AND SHARE DIVIDENDS |
Sec. 21.303. LIMITATIONS ON DISTRIBUTIONS
Latest version.
-
(a) A corporation may not make a distribution that violates the corporation's certificate of formation.
(b) Unless the distribution is made in compliance with Chapter 11, a corporation may not make a distribution:
(1) if the corporation would be insolvent after the distribution; or
(2) that exceeds the distribution limit.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.