Section 21.309 - Reserves, Designations, and Allocations From Surplus(a) A corporation, by resolution of the board of directors of the corporation, may: (1) create a reserve out of the surplus of the corporation; or(2) designate or allocate in any manner a part or all of the corporation's surplus for a proper purpose.(b) A corporation may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a).Tex. Bus. Org. Code § 21.309
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.