Tex. Business Organizations Code § 21.302
This is the official text of Tex. Business Organizations Code § 21.302, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 21.302. AUTHORITY FOR DISTRIBUTIONS.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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