(a) A state trust company may not reduce or increase its outstanding capital through dividend, redemption, issuance of shares or otherwise, without the prior approval of the Bank Commissioner, except as permitted by this section or regulations adopted under this chapter.
(b) Unless otherwise restricted by regulations, prior approval is not required for an increase in capital accomplished through:
(1) Issuance of shares of common stock for cash;
(2) Declaration and payment of pro rata share dividends as defined in the Arkansas Business Corporation Act, ยง 4-27-101 et seq.; or
(3) Adoption by the board of a resolution directing that all or part of undivided profits be transferred to capital.
(c) Prior approval is not required for a decrease in surplus caused by incurred losses in excess of undivided profits.
Section: Previous 23-51-109 23-51-110 23-51-111 23-51-112 23-51-113 23-51-114 23-51-115 23-51-116 23-51-117 23-51-118 23-51-119 23-51-120 23-51-121 23-51-122 23-51-123 NextLast modified: November 15, 2016