Sec. 21.304. REDEMPTIONS. (a) A distribution by a corporation that involves a redemption of outstanding redeemable shares of the corporation subject to redemption may be related to any or all of those shares.
(b) If less than all of the outstanding redeemable shares of a corporation subject to redemption are to be redeemed, the shares to be redeemed shall be selected for redemption:
(1) in accordance with the corporation's certificate of formation; or
(2) ratably or by lot in the manner prescribed by resolution of the corporation's board of directors, if the certificate of formation does not specify how shares are to be selected for redemption.
(c) A redemption of redeemable shares takes effect by call and written notice of the redemption of the shares.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 21 - For-Profit Corporations
Subchapter G. Distributions and Share Dividends
Section 21.302. Authority for Distributions
Section 21.303. Limitations on Distributions
Section 21.305. Notice of Redemption
Section 21.306. Deposit of Money for Redemption
Section 21.307. Payment of Redeemed Shares
Section 21.308. Priority of Distributions
Section 21.309. Reserves, Designations, and Allocations From Surplus
Section 21.310. Authority for Share Dividends
Section 21.311. Limitations on Share Dividends
Section 21.312. Value of Shares Issued as Share Dividends
Section 21.313. Transfer of Surplus for Share Dividends
Section 21.314. Determination of Solvency, Net Assets, Stated Capital, and Surplus
Section 21.315. Date of Determination of Solvency, Net Assets, Stated Capital, and Surplus
Section 21.316. Liability of Directors for Wrongful Distributions
Section 21.317. Statute of Limitations on Action for Wrongful Distribution
Section 21.318. Contribution From Certain Shareholders and Directors