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Tex. Bus. Orgs. Code § 21.309

RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

(a) A corporation, by resolution of the board of directors of the corporation, may:

(1) create a reserve out of the surplus of the corporation; or

(2) designate or allocate in any manner a part or all of the corporation's surplus for a proper purpose.

(b) A corporation may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a).

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.