No corporation shall pay dividends except in accordance with this chapter. Dividends may be paid in cash, in property, or in shares of the corporation's capital stock. If the dividend is to be paid in shares of the corporation's theretofore unissued capital stock the board of directors shall, by resolution, direct that there be designated as capital in respect of such shares an amount which is not less than the aggregate par value of par value shares being declared as a dividend and, in the case of shares without par value being declared as a dividend, such amount as shall be determined by the board of directors. No such designation as capital shall be necessary if shares are being distributed by a corporation pursuant to a split-up or division of its stock rather than as payment of a dividend declared payable in stock of the corporation.
Structure Delaware Code
Chapter 1. GENERAL CORPORATION LAW
Subchapter V. Stock and Dividends
§ 151. Classes and series of stock; redemption; rights.
§ 152. Issuance of stock; lawful consideration; fully paid stock.
§ 153. Consideration for stock.
§ 154. Determination of amount of capital; capital, surplus and net assets defined.
§ 157. Rights and options respecting stock.
§ 158. Stock certificates; uncertificated shares.
§ 159. Shares of stock; personal property, transfer and taxation.
§ 161. Issuance of additional stock; when and by whom.
§ 162. Liability of stockholder or subscriber for stock not paid in full.
§ 163. Payment for stock not paid in full.
§ 164. Failure to pay for stock; remedies.
§ 165. Revocability of preincorporation subscriptions.
§ 166. Formalities required of stock subscriptions.
§ 168. Judicial proceedings to compel issuance of new certificate or uncertificated shares.
§ 169. Situs of ownership of stock.
§ 170. Dividends; payment; wasting asset corporations.
§ 171. Special purpose reserves.
§ 172. Liability of directors and committee members as to dividends or stock redemption.