Tex. Bus. Org. Code § 21.303

Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.

Section 21.303 - Limitations on Distributions

(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.

Tex. Bus. Org. Code § 21.303

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