DecisionDepot
California legal research

Texas Business Organizations Code

§ 21.303 — LIMITATIONS ON DISTRIBUTIONS

BO § 21.303Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. G. DISTRIBUTIONS AND SHARE DIVIDENDS

Statute text

View on source
(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.

Legislative history

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

Source: Texas Business Organizations Code § 21.303 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.