South Dakota Codified Laws 47-1A-640.2. Factors used to measure effect of distribution
Except as provided in § 47-1A-640.4, the effect of a distribution under § 47-1A-640.1 is measured:
(1) In the case of distribution by purchase, redemption, or other acquisition of the corporation‘s shares, as of the earlier of the date money or other property is transferred or debt incurred by the corporation, or the date the shareholder ceases to be a shareholder with respect to the acquired shares;
Terms Used In South Dakota Codified Laws 47-1A-640.2
- 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 property, real and personal. See South Dakota Codified Laws 2-14-2
(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 the date the distribution is authorized if the payment occurs within one hundred twenty days after the date of authorization, or the date the payment is made if it occurs more than one hundred twenty days after the date of authorization.
Source: SL 2005, ch 239, § 82.