Tex. Bus. Orgs. Code § 21.303 · Subchapter G. DISTRIBUTIONS AND SHARE DIVIDENDS
LIMITATIONS ON DISTRIBUTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm
- Text hash
- sha256 e12dd98c11304f673f0a31ad4164d85a16ce3274f433518cf01828831ced171a
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business Organizations Code
Cited by 5 provisions
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 21.303. Each shows the citation as that text prints it.
Business Organizations Code
- Tex. Bus. Orgs. Code § 21.101SHAREHOLDERS' AGREEMENT.Printed as Section 21.303
- Tex. Bus. Orgs. Code § 21.154CERTAIN OPTIONAL CHARACTERISTICS OF SHARES.Printed as Section 21.303 | Sections 21.303 and 21.304
- Tex. Bus. Orgs. Code § 21.302AUTHORITY FOR DISTRIBUTIONS.Printed as Section 21.303
- Tex. Bus. Orgs. Code § 21.316LIABILITY OF DIRECTORS FOR WRONGFUL DISTRIBUTIONS.Printed as Section 21.303
- Tex. Bus. Orgs. Code § 21.318CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS.Printed as Section 21.303
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.