17-6423.   Dividends; method of payment.No corporation shall pay dividends except in accordance with this act.Dividends may be paid in cash, in property or in shares of the corporation'scapital stock. If the dividend is to be paid in shares of the corporation'stheretofore unissued capital stock, the board of directors shall, byresolution, direct that there be designated as capital in respect of suchshares an amount which is not less than the aggregate par value of par valueshares being declared as a dividend and, in the case of shares without parvalue being declared as a dividend, such amount as shall be determined by theboard of directors. No such designation as capital shall be necessary if sharesare being distributed by a corporation pursuant to a split-up or division ofits stock rather than as payment of a dividend declared payable instock of the corporation.

      History:   L. 1972, ch. 52, § 50;L. 1988, ch. 99, § 20;Revived and amend., L. 1988, ch. 100, § 20;L. 1992, ch. 270, § 9;L. 2004, ch. 143, § 22; Jan. 1, 2005.