Texas § 21.302 AUTHORITY FOR DISTRIBUTIONS.

Texas Statutes

§ 21.302 — AUTHORITY FOR DISTRIBUTIONS.

Texas § 21.302

Code BOBusiness Organizations Code

This text of Texas § 21.302 (AUTHORITY FOR DISTRIBUTIONS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 21.302 (2026).

Text

Sec. 21.302. AUTHORITY FOR DISTRIBUTIONS.

(a)The board of directors of a corporation may authorize a distribution and the corporation may make a distribution, subject to Section 21.303 .

(b)The board of directors may authorize a distribution by determining the maximum amount that may be distributed and the period during which the maximum amount may be distributed, including by setting a formula to determine the amount to be distributed. The authorization by the board of directors for a distribution may provide that the distribution be paid:

(1)in the amounts and at the times as stated in the authorization; or

(2)in the manner stated in the authorization, which may include a determination or action by any person or persons, including the corporation, if the authorization states the maxi

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 21.302. AUTHORITY FOR DISTRIBUTIONS. (a) The board of directors of a corporation may authorize a distribution and the corporation may make a distribution, subject to Section 21.303 .
(b) The board of directors may authorize a distribution by determining the maximum amount that may be distributed and the period during which the maximum amount may be distributed, including by setting a formula to determine the amount to be distributed. The authorization by the board of directors for a distribution may provide that the distribution be paid:
(1) in the amounts and at the times as stated in the authorization; or
(2) in the manner stated in the authorization, which may include a determination or action by any person or persons, including the corporation, if the authorization states the maximum amount that may be distributed under the authorization and the period during which the maximum amount may be distributed.

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2017, 85th Leg., R.S., Ch. 75 (S.B. 1518 ), Sec. 10, eff. September 1, 2017.