12 U.S.C. § 626 — Dividends; surplus fund
submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 70 words · no verdicts yet
Directors may declare dividends twice a year, but must first transfer part of recent profits to the surplus fund until it reaches the required size.
The directors may declare a dividend twice a year from as much of the corporation’s net profits as they think appropriate. Before declaring a dividend, the corporation must transfer one-tenth of its net profits from the preceding six months to its surplus fund. It must continue doing this until the surplus fund equals 20 percent of its capital stock.
The directors of any corporation organized under the provisions of this subchapter may, semiannually, declare a dividend of so much of the net profits of the corporation as they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its capital stock.
Source credit: (Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered § 25A, Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)
- 1913Enacted · Act of Dec. 23, 1913, ch. 6 · 41 Stat. 378
- 1991Amended · Pub. L. 102-242 · 105 Stat. 2281
A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.
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