§ 10A-2A-6.31 — Corporation’s Acquisition of Its Own Stock

Alabama § 10A-2A-6.31

• Jurisdiction: Alabama
• Title 10A: Alabama Business and Nonprofit Entities Code
• Ch. 2A: Alabama Business Corporation Law
• Art. 6: Stock and Distributions
• Div. C: Subsequent Acquisition of Stock by Stockholders and Corporation

Text

(a) A corporation may acquire its own stock, and, the stock so acquired shall constitute authorized but unissued stock, provided, however, that:
(1) the certificate of incorporation may provide that the acquired stock shall constitute authorized, issued, but not outstanding stock;
(2) the
certificate of incorporation
may prohibit
the reissue of the acquired stock,
in which case
the number of authorized shares of stock is reduced by the number of shares of stock acquired
; or
(3) if the certificate of incorporation does not (i) provide that the acquired stock shall constitute authorized but unissued stock, (ii) prohibit the reissuance of the acquired stock, or (iii) provide that the acquired stock shall constitute authorized, issued, but not outstanding stock, then the board of directors may determine, at or prior to the time of the acquisition, that the acquired stock will constitute authorized, issued, but not outstanding stock.
(b) If the board of directors has determined that any acquired stock was to be authorized, issued, but not outstanding in accordance with subsection (a)(3), then the board of directors may thereafter determine that the acquired stock shall be converted to stock that is authorized but not issued.

Legislative History

(Act 2019-94, §1; Act 2024-413, §1.)