Indiana § 28-13-4-5 Impairment of capital prohibited; maximum dividend

Indiana Statutes

§ 28-13-4-5 — Impairment of capital prohibited; maximum dividend

Indiana § 28-13-4-5

Art. 13CORPORATE GOVERNANCE

Ch. 4Dividends and Other Distributions

This text of Indiana § 28-13-4-5 (Impairment of capital prohibited; maximum dividend) 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 § 28-13-4-5 (2026).

Text

(a)A corporation may not declare or pay any dividends to its shareholders in any form if, by the payment of the dividends, its capital stock will be thereby impaired.

(b)Unless approved by the director, a corporation may not pay a dividend in an amount greater than the remainder of undivided profits then on hand after deducting losses, bad debts, or depreciation that the department may have determined, and all other expenses.

(c)A corporation must obtain department approval before reducing the corporation's capital stock, capital surplus, or preferred stock.

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(a) A corporation may not declare or pay any
dividends to its shareholders in any form if, by the payment of the
dividends, its capital stock will be thereby impaired.
(b) Unless approved by the director, a corporation may not pay a
dividend in an amount greater than the remainder of undivided profits
then on hand after deducting losses, bad debts, or depreciation that the
department may have determined, and all other expenses.
(c) A corporation must obtain department approval before reducing
the corporation's capital stock, capital surplus, or preferred stock.