Indiana § 23-1-28-3 Prohibited distributions

Indiana Statutes

§ 23-1-28-3 — Prohibited distributions

Indiana § 23-1-28-3

Title 23BUSINESS AND OTHER ASSOCIATIONS

Art. 1INDIANA BUSINESS CORPORATION LAW

Ch. 28Distributions to Shareholders

This text of Indiana § 23-1-28-3 (Prohibited distributions) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 23-1-28-3 (2026).

Text

A distribution may not be made if, after giving it effect:

(1)the corporation would not be able to pay its debts as they become due in the usual course of business; or

(2)the corporation's total assets would be less than the sum of its total liabilities plus (unless the articles of incorporation permit otherwise) the amount that would be needed, if the corporation were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of shareholders whose preferential rights are superior to those receiving the distribution.

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A distribution may not be made if, after giving
it effect:
(1) the corporation would not be able to pay its debts as they
become due in the usual course of business; or
(2) the corporation's total assets would be less than the sum of its
total liabilities plus (unless the articles of incorporation permit
otherwise) the amount that would be needed, if the corporation
were to be dissolved at the time of the distribution, to satisfy the
preferential rights upon dissolution of shareholders whose
preferential rights are superior to those receiving the distribution.