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Texas Finance Code - Section 92.210. Series And Classes Of Preferred Stock

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 92.210. Series And Classes Of Preferred Stock

§ 92.210. SERIES AND CLASSES OF PREFERRED STOCK.  (a) The 
articles of incorporation may:
		(1)  authorize that shares of preferred stock be 
divided into and issued in series;  and
		(2)  determine the rights and preferences of each 
series or part of a series.
	(b)  Each series must be clearly designated to distinguish 
its shares from the shares of other series or classes.
	(c)  The articles of incorporation may authorize the board by 
resolution to divide classes of preferred stock into series and to 
determine the rights and preferences of the shares of each series.  
A copy of the resolution must be submitted to the commissioner 
before the shares may be issued.  The commissioner shall file the 
resolution in the commissioner's office if the resolution conforms 
to this subtitle.  After the resolution is filed, it is considered 
an amendment of the savings bank's articles of incorporation.
	(d)  All shares of the same class of preferred stock must be 
identical except for the following rights and preferences:
		(1)  the rate of dividend;                                                    
		(2)  the terms, including price and conditions, under 
which shares may be redeemed;
		(3)  the amount payable for shares on involuntary 
liquidation;              
		(4)  the amount payable for shares on voluntary 
liquidation;                
		(5)  a sinking fund provision for the redemption or 
purchase of shares;     
		(6)  the terms, including conditions, of conversion of 
shares that may be converted;  and
		(7)  voting rights.                                                           

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 10, 2007