Tex. Business Organizations Code § 21.309
This is the official text of Tex. Business Organizations Code § 21.309, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 21.309. RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.
Official statutory text
(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).
(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).
Status: in_force · Read it on the official government site
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