Sec. 21.313. TRANSFER OF SURPLUS FOR SHARE DIVIDENDS. (a) When a share dividend payable in authorized but unissued shares with par value is made by a corporation, an amount of surplus designated by the corporation's board of directors that is not less than the aggregate par value of the shares issued as a share dividend shall be transferred to stated capital.
(b) When a share dividend payable in authorized but unissued shares without par value is made by a corporation, an amount of surplus equal to the aggregate value set by the corporation's board of directors with respect to shares under Section 21.312(b) shall be transferred to stated capital.
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