Sec. 21.303. LIMITATIONS ON DISTRIBUTIONS. (a) A corporation may not make a distribution that violates the corporation's certificate of formation.
(b) Unless the distribution is made in compliance with Chapter 11, a corporation may not make a distribution:
(1) if the corporation would be insolvent after the distribution; or
(2) that exceeds the distribution limit.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
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