Section 200.206 - Limitations on Share Dividends(a) A real estate investment trust may not pay a share dividend in authorized but unissued shares of any class if the surplus of the real estate investment trust is less than the amount required by Section 200.208 to be transferred to stated capital at the time the share dividend is made.(b) A share dividend in shares of any class may not be made to a holder of shares of any other class unless: (1) the real estate investment trust's certificate of formation provides for the dividend; or(2) the share dividend is authorized by the affirmative vote or the written consent of the holders of at least a majority of the outstanding shares of the class in which the share dividend is to be made.Tex. Bus. Org. Code § 200.206
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.