Sec. 62.157. 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 association'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, Sec. 1, eff. Sept. 1, 1997.
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