Texas Business Organizations Code - Section 23.069. Surplus
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§ 23.069. SURPLUS. (a) A corporation shall set apart as
earned surplus not less than 10 percent of the corporation's net
earnings each year until the surplus, with any unimpaired surplus
paid in, is equal to one-half of the amount paid in on the shares
then outstanding. The surplus shall be kept to secure against
losses and contingencies. If the surplus becomes impaired, the
surplus shall be reimbursed in the manner provided for its
accumulation.
(b) Net earnings and surplus shall be determined by the
board of directors after providing for the required reserves as the
directors consider advisable. A good faith determination of net
earnings and surplus by the directors under this subsection is
conclusive.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 23.062 23.063 23.064 23.065 23.066 23.067 23.068 23.069 23.070 23.071 23.101 23.102 23.103 23.104 23.105
Last modified: August 10, 2007
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