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4-26-617. Dividends — General powers of board.

Arkansas Code — all titles (historical 2020) · legal_authorities

4-26-617. Dividends — General powers of board.

4-26-617. Dividends — General powers of board. The board of directors may from time to time declare, and the corporation may pay, dividends on its outstanding shares, which dividends may be payable in cash or property or may be payable in the shares of the corporation. However, the declaration and payment of all dividends shall be subject to the provisions and restrictions contained in §§ 4-26-618 and 4-26-619.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-26-617

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.

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Stable record: arkansas_code:legal_authorities:4-26-617
Source file: gov.ar.code.title.04.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 8438f5a92d37998aad1d28d8e994c2a200482347e5269f9c0eaa3137616dcc5c

Source location: content.xml paragraph 14014

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Arkansas Code — all titles (historical 2020) · legal_authorities

4-26-618. Share dividends.

4-26-618. Share dividends. (a) Subject to the restrictions provided in this subsection, the board of directors of a corporation may declare and pay dividends in its own authorized but unissued shares out of any unreserved and unrestricted surplus other than revaluation surplus of the corporation upon the following conditions: (1) If a dividend is payable in its own shares having a par value, those shares shall be issued at not less than the par value, and there shall be transferred to stated capital at the time the dividend is paid an amount of surplus at least equal to the aggregate par value of the shares to be issued as a dividend; (2) If a dividend is payable in its own shares without par value, such shares shall be issued at not less than the stated value, which shall not be more than the fair value, as determined by resolution of the board of directors adopted at the time the dividend is declared, and there shall be transferred to stated capital at the time dividend is paid an amount of surplus equal to the aggregate stated value of the shares to be issued as a dividend; (3) If the fair value of the shares included in the share dividend, as determined by resolution of the board of directors, exceeds the stated value thereof at the time the dividend is paid, the difference between the stated value and the fair value shall be accounted for in accordance with generally accepted accounting principles. (b) When any share dividend is paid out of capital surplus, the shareholders receiving the dividend shall be concurrently notified of the source thereof. (c) No dividend payable in shares of any class shall be paid to the holders of shares of any other class unless the articles of incorporation so provide or payment is authorized by the affirmative vote or th

Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-26-618

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. The source passage cites 4-26-618. This identifies an authority to review, not proof of applicability.

Arkansas Code — all titles (historical 2020) · legal_authorities

4-26-619. Dividends other than in shares of the corporation.

4-26-619. Dividends other than in shares of the corporation. In respect to all dividends payable by a corporation other than dividends payable in its own shares: (1) Subject to subdivisions (3) and (4) of this section, these dividends shall be payable only: (A) Out of the unreserved and unrestricted earned surplus of the corporation; or (B) Out of the capital surplus other than revaluation surplus of the corporation, but dividends from capital surplus may be paid only if there is no unreserved and unrestricted earned surplus and then only to shares entitled to cumulative preferential dividends, and no capital surplus paid in by any class of stock may be used for the payment of dividends on any class junior thereto; or (C) Out of the corporation's net profits for the fiscal year then current. (2) No dividend may be declared or paid if there are reasonable grounds for believing that upon the payment: (A) The liabilities of the corporation would exceed its assets; or (B) The corporation would be unable to pay its obligations to creditors as they become due in the ordinary course of business; or (C) The highest liquidation preferences of shares entitled to such preference over the shares receiving the dividend would exceed the corporation's net assets; or (D) The payment of the dividend would be contrary to any provision of the articles of incorporation. (3) Except to the extent prohibited by its articles of incorporation, a corporation engaged solely or substantially in the exploitation of mines, timber, oil wells, gas wells, patents, or other wasting assets, or organized solely or substantially for the liquidation of specific assets, may, for the purpose of determining its right to pay dividends, compute its earned surplus or net profits without deduc

Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-26-619

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. The source passage cites 4-26-619. This identifies an authority to review, not proof of applicability.