351.210. Paid-in surplus--its distribution and restrictions.
Paid-in surplus--its distribution and restrictions.
351.210. 1. Paid-in surplus, whether created by reductionof stated capital or otherwise, may be distributed in cash or inkind to the shareholders entitled thereto, subject to thefollowing restrictions and in the following manner:
(1) No such distribution shall be made to any class ofshareholders unless all cumulative dividends accrued on* preferredor special classes of shares entitled to preferred dividendsshall have been fully paid;
(2) No such distribution shall be made to any class ofshareholders when the net assets are less than its stated capitalor when such distribution would reduce the net assets below thestated capital;
(3) Each such distribution, when made, shall be identifiedas a liquidating dividend and the amount per share shall bedisclosed to the shareholders receiving the same, concurrentlywith the payment thereof.
2. The corporation may by resolution of its board ofdirectors apply any part or all of its paid-in surplus to thereduction or elimination of any deficit arising from operating orother losses, or from diminution in value of its assets.
(L. 1943 p. 410 § 61, A.L. 1945 p. 696)*Word "or" appears in original rolls.