Arkansas Statutes

§ 4-26-613 — Redeemable shares - Restrictions on redemption or purchase

Arkansas·Title 4

A corporation shall not redeem its shares, or purchase its redeemable shares in lieu of redemption, if at the time of, or as a result of, such transaction:

(1)There is a reasonable ground for believing that the corporation would be unable to meet its obligations as they become due in the ordinary course of business; or (2) The remaining assets of the corporation would be less than one and one-fourth (1¼) times the amount of its liabilities to creditors; or (3) If by the redemption or purchase the net assets would be reduced below the aggregate amount payable to the holders of shares to remain outstanding which have prior or equal rights to the assets of the corporation upon dissolution; or (4) If there exist any unpaid accrued preferential dividends with respect to any shares having prior

Free access — add to your briefcase to read the full text and ask questions with AI

Arkansas § 4-26-613 (Redeemable shares - Restrictions on redemption or purchase) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Acts 1965, No. 576, § 66; A.S.A. 1947, § 64-601.

Nearby Sections

15
View on official source ↗