(a) The incorporators or the board of directors of a corporation formed under this chapter may divide the corporation's capital stock into preferred and common stock.
(b) If preferred stock is to be issued, the articles of incorporation must state:
(1) the amount of preferred stock that the corporation may issue;
(2) the conditions and procedure for the payment of dividends on preferred stock;
(3) the rate at which preferred stock dividends are paid; and
(4) the conditions and procedure for the retirement of preferred and common stock.
(c) A corporation may not pay dividends on its common stock until it has fully paid dividends on its preferred stock at the rate provided by its articles of incorporation.