§ 28-5-1-14 — Surplus account; dividends

Every such company shall on June 30 and
December 31 of each year, and before the payment of any dividends on
its outstanding stock, transfer to its surplus account a credit equal to
five per cent (5%) of the net earnings of such company for the
preceding six (6) months and shall accumulate such surplus account
until the unimpaired amount thereof equals the amount of the capital
stock of such company. No such company shall declare or pay
dividends upon its stock in any form unless its capital is unimpaired
and unless a surplus fund equal to twenty-five per cent (25%) of its
capital has been accumulated and is maintained unimpaired. Thereafter
any such company may annually or semiannually, but not more
frequently declare and pay a dividend of so much of its net earnings as
may be deemed expedient, but the rate of such dividend shall not
exceed the rate of six per cent (6%) per annum upon the book value of
its shares, as determined by the department, until the unimpaired
surplus fund of the company is equal to the amount of its unimpaired
capital stock.
Formerly: Acts 1935, c.181, s.14.