Reserves, Designations, and Allocations From Surplus

Sec. 21.309. RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS. (a) A corporation, by resolution of the board of directors of the corporation, may: (1) create a reserve out of the surplus of the corporation; or (2) designate or allocate in any manner a part or all of the corporation's surplus for a proper purpose. (b) A corporation may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a). Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.