Sec. 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. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Limitations On Distributions
Tex. Business Organizations Code § 21.303, under For-Profit Corporations.
Tex. Business Organizations Code § 21.303