Texas § 21.309 RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.

Texas Statutes

§ 21.309 — RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.

Texas § 21.309

Code BOBusiness Organizations Code

This text of Texas § 21.309 (RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.) 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. § 21.309 (2026).

Text

Sec. 21.309. RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.

(a)A corporation, by resolution of the board of directors of the corporation, may:

(1)create a reserve out of the surplus of the corporation; or

(2)designate or allocate in any manner a part or all of the corporation's surplus for a proper purpose.

(b)A corporation may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a).

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Sec. 21.309. RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS. (a) A corporation, by resolution of the board of directors of the corporation, may:
(1) create a reserve out of the surplus of the corporation; or
(2) designate or allocate in any manner a part or all of the corporation's surplus for a proper purpose.
(b) A corporation may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a).