Indiana Statutes
§ 23-1-28-3 — Prohibited distributions
Indiana·Title 23 BUSINESS AND OTHER ASSOCIATIONS·Art. 1 INDIANA BUSINESS CORPORATION LAW·Ch. 28 Distributions to Shareholders
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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Related
Winkler v. V.G. Reed & Sons, Inc.
638 N.E.2d 1228 (Indiana Supreme Court, 1994)
Rose v. Mercantile National Bank of Hammond
844 N.E.2d 1035 (Indiana Court of Appeals, 2006)
Designplan, Inc. and Jill D. Willey v. John R. Price and The National Bank of Indianapolis Corporation
(Indiana Court of Appeals, 2013)
Legislative History
As added by P.L.149-1986, SEC.12.
Nearby Sections
15
§ 23-0.5-1-1
Short title§ 23-0.5-1-2
Application§ 23-0.5-1-3
Application; exceptions§ 23-0.5-1-4
Delivery of record§ 23-0.5-1-5
Rules and procedures§ 23-0.5-1-6
Terms dependent on facts ascertainable outside the plan or filed
document; articles of amendment§ 23-0.5-1.5-1
Application of definitions§ 23-0.5-1.5-10
"Filed record"§ 23-0.5-1.5-11
"Filing entity"§ 23-0.5-1.5-12
"Foreign"§ 23-0.5-1.5-13
"General partnership"§ 23-0.5-1.5-14
"Governance interest"§ 23-0.5-1.5-15
"Governing person"§ 23-0.5-1.5-16
"Interest"§ 23-0.5-1.5-17
"Interest holder"