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Texas Business Organizations Code

§ 21.252 — CANCELLATION OF TREASURY SHARES

BO § 21.252Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. F. REDUCTIONS IN STATED CAPITAL; CANCELLATION OF TREASURY SHARES

Statute text

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(a)A corporation, by resolution of the board of directors of the corporation, may cancel all or part of the corporation's treasury shares at any time.
(b)Upon the cancellation of treasury shares, the stated capital of the corporation shall be reduced by that part of the stated capital that was, at the time of the cancellation, represented by the canceled shares, and the canceled shares shall be restored to the status of authorized but unissued shares.
(c)This section does not prohibit a cancellation of shares or a reduction of stated capital in any other manner permitted by law.

Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Source: Texas Business Organizations Code § 21.252 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.