Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
Section 21.303 - Limitations on Distributions(a) A corporation may not make a distribution that violates the corporation's certificate of formation.(b) Unless the distribution is made in compliance with Chapter 11, a corporation may not make a distribution:(1) if the corporation would be insolvent after the distribution; or(2) that exceeds the distribution limit.Tex. Bus. Org. Code § 21.303
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.