Texas Statutes

§ 21.303 — LIMITATIONS ON DISTRIBUTIONS.

Texas § 21.303
JurisdictionTexas
Code BOBusiness Organizations Code

This text of Texas § 21.303 (LIMITATIONS ON 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. § 21.303 (2026).

Text

Sec. 21.303. LIMITATIONS ON DISTRIBUTIONS.

(a)A corporation may not make a distribution that violates the corporation's certificate of formation.
(b)Unless the distribution is made in compliance with Chapter 11 , a corporation may not make a distribution:
(1)if the corporation would be insolvent after the distribution; or
(2)that exceeds the distribution limit.

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Related

S & S Food Corp. v. Sherali (In re Sherali)
490 B.R. 104 (N.D. Texas, 2013)
6 case citations

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Nearby Sections

15
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Bluebook (online)
Texas § 21.303, Counsel Stack Legal Research, https://law.counselstack.com/statute/tx/BO/21.303.