State Codes and Statutes

Statutes > New-york > Bsc > Article-5 > 510

§ 510. Dividends or other distributions in cash or property.    (a)  A  corporation  may  declare  and  pay  dividends  or  make other  distributions in cash or its bonds or its property, including the shares  or bonds of other corporations, on its outstanding shares,  except  when  currently  the  corporation  is  insolvent  or  would  thereby  be  made  insolvent, or when the declaration, payment  or  distribution  would  be  contrary   to   any   restrictions   contained  in  the  certificate  of  incorporation.    (b) Dividends may be declared or paid and other distributions  may  be  made  either  (1)  out  of  surplus,  so  that  the  net  assets  of the  corporation remaining after such declaration,  payment  or  distribution  shall  at  least  equal the amount of its stated capital, or (2) in case  there shall be no such surplus, out of its net profits  for  the  fiscal  year in which the dividend is declared and/or the preceding fiscal year.  If  the  capital  of  the  corporation  shall  have  been  diminished by  depreciation in the value of its property or by losses or  otherwise  to  an  amount  less  than  the  aggregate  amount  of  the  stated  capital  represented by the issued and outstanding shares of all classes having a  preference upon the  distribution  of  assets,  the  directors  of  such  corporation  shall  not  declare  and  pay  out  of such net profits any  dividends upon any shares until the deficiency in the amount  of  stated  capital  represented by the issued and outstanding shares of all classes  having a preference upon the distribution  of  assets  shall  have  been  repaired. A corporation engaged in the exploitation of natural resources  or  other wasting assets, including patents, or formed primarily for the  liquidation of specific assets, may declare and pay  dividends  or  make  other  distributions in excess of its surplus, computed after taking due  account of depletion and amortization, to the extent that  the  cost  of  the wasting or specific assets has been recovered by depletion reserves,  amortization  or  sale, if the net assets remaining after such dividends  or distributions are sufficient to cover the liquidation preferences  of  shares having such preferences in involuntary liquidation.

State Codes and Statutes

Statutes > New-york > Bsc > Article-5 > 510

§ 510. Dividends or other distributions in cash or property.    (a)  A  corporation  may  declare  and  pay  dividends  or  make other  distributions in cash or its bonds or its property, including the shares  or bonds of other corporations, on its outstanding shares,  except  when  currently  the  corporation  is  insolvent  or  would  thereby  be  made  insolvent, or when the declaration, payment  or  distribution  would  be  contrary   to   any   restrictions   contained  in  the  certificate  of  incorporation.    (b) Dividends may be declared or paid and other distributions  may  be  made  either  (1)  out  of  surplus,  so  that  the  net  assets  of the  corporation remaining after such declaration,  payment  or  distribution  shall  at  least  equal the amount of its stated capital, or (2) in case  there shall be no such surplus, out of its net profits  for  the  fiscal  year in which the dividend is declared and/or the preceding fiscal year.  If  the  capital  of  the  corporation  shall  have  been  diminished by  depreciation in the value of its property or by losses or  otherwise  to  an  amount  less  than  the  aggregate  amount  of  the  stated  capital  represented by the issued and outstanding shares of all classes having a  preference upon the  distribution  of  assets,  the  directors  of  such  corporation  shall  not  declare  and  pay  out  of such net profits any  dividends upon any shares until the deficiency in the amount  of  stated  capital  represented by the issued and outstanding shares of all classes  having a preference upon the distribution  of  assets  shall  have  been  repaired. A corporation engaged in the exploitation of natural resources  or  other wasting assets, including patents, or formed primarily for the  liquidation of specific assets, may declare and pay  dividends  or  make  other  distributions in excess of its surplus, computed after taking due  account of depletion and amortization, to the extent that  the  cost  of  the wasting or specific assets has been recovered by depletion reserves,  amortization  or  sale, if the net assets remaining after such dividends  or distributions are sufficient to cover the liquidation preferences  of  shares having such preferences in involuntary liquidation.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Bsc > Article-5 > 510

§ 510. Dividends or other distributions in cash or property.    (a)  A  corporation  may  declare  and  pay  dividends  or  make other  distributions in cash or its bonds or its property, including the shares  or bonds of other corporations, on its outstanding shares,  except  when  currently  the  corporation  is  insolvent  or  would  thereby  be  made  insolvent, or when the declaration, payment  or  distribution  would  be  contrary   to   any   restrictions   contained  in  the  certificate  of  incorporation.    (b) Dividends may be declared or paid and other distributions  may  be  made  either  (1)  out  of  surplus,  so  that  the  net  assets  of the  corporation remaining after such declaration,  payment  or  distribution  shall  at  least  equal the amount of its stated capital, or (2) in case  there shall be no such surplus, out of its net profits  for  the  fiscal  year in which the dividend is declared and/or the preceding fiscal year.  If  the  capital  of  the  corporation  shall  have  been  diminished by  depreciation in the value of its property or by losses or  otherwise  to  an  amount  less  than  the  aggregate  amount  of  the  stated  capital  represented by the issued and outstanding shares of all classes having a  preference upon the  distribution  of  assets,  the  directors  of  such  corporation  shall  not  declare  and  pay  out  of such net profits any  dividends upon any shares until the deficiency in the amount  of  stated  capital  represented by the issued and outstanding shares of all classes  having a preference upon the distribution  of  assets  shall  have  been  repaired. A corporation engaged in the exploitation of natural resources  or  other wasting assets, including patents, or formed primarily for the  liquidation of specific assets, may declare and pay  dividends  or  make  other  distributions in excess of its surplus, computed after taking due  account of depletion and amortization, to the extent that  the  cost  of  the wasting or specific assets has been recovered by depletion reserves,  amortization  or  sale, if the net assets remaining after such dividends  or distributions are sufficient to cover the liquidation preferences  of  shares having such preferences in involuntary liquidation.