{"data":{"id":"us-tx/tex.-business-organizations-code-21.311","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.311","heading":"LIMITATIONS ON SHARE DIVIDENDS.","body":"A corporation may not pay a share dividend in authorized but unissued shares of any class if:\n(1) the surplus of the corporation is less than the amount required by Section 21.313 to be transferred to stated capital at the time the share dividend is made; or\n(2) the share dividend will be made to a holder of shares of any other class or series, unless:\n(A) the corporation's certificate of formation provides for the dividend; or\n(B) the share dividend is authorized by the holders of at least a majority of the outstanding shares of the class or series in which the share dividend is to be made.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 2. CORPORATIONS","CHAPTER 21. FOR-PROFIT CORPORATIONS","SUBCHAPTER G. DISTRIBUTIONS AND SHARE DIVIDENDS"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm#21.311","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"f3ee07e536549e55988af2a21e562d687437e0bd5468e3f0f29517580c82ef5d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.310","next":"us-tx/tex.-business-organizations-code-21.312"},"notice":"GroundRules: Original legal text. Not legal advice."}