Indiana § 28-13-4-3 Dividends; approval of department required; retained net income;
exemption from approval requirements

Indiana Statutes

§ 28-13-4-3 — Dividends; approval of department required; retained net income; exemption from approval requirements

Indiana·Art. 13 CORPORATE GOVERNANCE·Ch. 4 Dividends and Other Distributions

(a)A corporation may declare a dividend of so much of the undivided profits of the corporation as is considered expedient by the board of directors.

(b)A corporation must obtain the approval of the department for the payment of a dividend if the total of all dividends declared by the corporation during the calendar year, including the proposed dividend, would exceed the sum of the net income for the year to date combined with its retained net income for the previous two (2) years.

(c)As used in subsection (b), "retained net income" means the net income of a specified period, calculated under the consolidated report of income instructions, less the total amount of all dividends declared for the specified period.

(d)The department may establish criteria for a corporation to be exempt fro

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(a) A corporation may declare a dividend of so
much of the undivided profits of the corporation as is considered
expedient by the board of directors.
(b) A corporation must obtain the approval of the department for the
payment of a dividend if the total of all dividends declared by the
corporation during the calendar year, including the proposed dividend,
would exceed the sum of the net income for the year to date combined
with its retained net income for the previous two (2) years.
(c) As used in subsection (b), "retained net income" means the net
income of a specified period, calculated under the consolidated report
of income instructions, less the total amount of all dividends declared
for the specified period.
(d) The department may establish criteria for a corporation to be
exempt from the dividend approval requirements of this section. In
establishing the criteria, the department shall consider:
(1) the corporation's composite uniform financial institutions
rating assigned as a result of the corporation's most recent federal
or state examination, or in the case of a corporate fiduciary, the
corporate fiduciary rating assigned as a result of the corporate
fiduciary's most recent state examination;
(2) the resulting Tier 1 leverage capital ratio; and
(3) the existence of any corrective or supervisory order or
agreement.

Indiana § 28-13-4-3 (Dividends; approval of department required; retained net income; exemption from approval requirements) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

As added by P.L.14-1992, SEC.163. Amended by P.L.122-1994, SEC.119; P.L.262-1995, SEC.84; P.L.176-1996, SEC.28; P.L.11-1998, SEC.22; P.L.90-2008, SEC.77.