4-26-613. Redeemable shares — Restrictions on redemption or purchase.

Arkansas Code — all titles (historical 2020) · legal_authorities

4-26-613. Redeemable shares — Restrictions on redemption or purchase.

4-26-613. Redeemable shares — Restrictions on redemption or purchase. A corporation shall not redeem its shares, or purchase its redeemable shares in lieu of redemption, if at the time of, or as a result of, such transaction: (1) There is a reasonable ground for believing that the corporation would be unable to meet its obligations as they become due in the ordinary course of business; or (2) The remaining assets of the corporation would be less than one and one-fourth (1¼) times the amount of its liabilities to creditors; or (3) If by the redemption or purchase the net assets would be reduced below the aggregate amount payable to the holders of shares to remain outstanding which have prior or equal rights to the assets of the corporation upon dissolution; or (4) If there exist any unpaid accrued preferential dividends with respect to any shares having priority as to dividends over the shares to be redeemed or purchased.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-26-613

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.