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Texas Business Organizations Code - Section 200.206. Limitations On Share Dividends

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 200.206. Limitations On Share Dividends

§ 200.206. LIMITATIONS ON SHARE DIVIDENDS.  (a) A real 
estate investment trust may not pay a share dividend in authorized 
but unissued shares of any class if the surplus of the real estate 
investment trust is less than the amount required by Section 
200.208 to be transferred to stated capital at the time the share 
dividend is made.
	(b)  A share dividend in shares of any class may not be made 
to a holder of shares of any other class unless:
		(1)  the real estate investment trust's certificate of 
formation provides for the dividend;  or
		(2)  the share dividend is authorized by the 
affirmative vote or the written consent of the holders of at least a 
majority of the outstanding shares of the class in which the share 
dividend is to be made.

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

Last modified: August 11, 2007