Indiana Code 23-1-28-5. Measuring effect of distribution; date
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Sec. 5. The effect of a distribution under section 3 of this chapter is measured:
(A) the date money or other property is transferred or debt incurred by the corporation; or
(1) in the case of distribution by purchase, redemption, or other acquisition of the corporation‘s shares, as of the earlier of:
Terms Used In Indiana Code 23-1-28-5
- 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.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
(B) the date the shareholder ceases to be a shareholder with respect to the acquired shares;
(2) in the case of any other distribution of indebtedness, as of the date the indebtedness is distributed; and
(3) in all other cases, as of:
(A) the date the distribution is authorized if the payment occurs within one hundred twenty (120) days after the date of authorization; or
(B) the date the payment is made if it occurs more than one hundred twenty (120) days after the date of authorization.
As added by P.L.149-1986, SEC.12.