Indiana Code 23-1-28-3. Prohibited distributions
Current as of: 2024 | Check for updates
|
Other versions
Sec. 3. A distribution may not be made if, after giving it effect:
(2) the corporation’s total assets would be less than the sum of its total liabilities plus (unless the articles of incorporation permit otherwise) the amount that would be needed, if the corporation were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of shareholders whose preferential rights are superior to those receiving the distribution.
(1) the corporation would not be able to pay its debts as they become due in the usual course of business; or
Terms Used In Indiana Code 23-1-28-3
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
As added by P.L.149-1986, SEC.12.