Section 71. No company shall reduce its stated capital to an amount less than required by section forty-eight or fifty-one nor shall it reduce such capital unless the commissioner determines that the reduction is in conformity to law and will not be prejudicial to the public. Except as provided in this section or in section seventy-two, no assets or property shall be distributed to a company’s shareholders, whether by way of dividend, purchase of its own stock or otherwise, if its stated capital would be impaired thereby. Within ten days after a meeting of stockholders at which any reduction of the company’s stated capital is voted, the company shall submit to the commissioner a certificate setting forth the proceedings thereof, the method of reduction and the amount thereof and of the assets and liabilities of the company, signed and sworn to by its president, secretary and a majority of its directors. If the commissioner finds that the reduction is made in conformity to law and that it will not be prejudicial to the public, he shall endorse his approval thereon; the company may thereafter transact business upon the capital as reduced, and the commissioner shall, upon payment of the fee prescribed by section fourteen, issue his certificate to that effect.

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Terms Used In Massachusetts General Laws ch. 175 sec. 71

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.