Houston Texas Amendment to Articles of Incorporation regarding paying distributions out of any funds legally available therefor

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• City: Houston
• Control #: US-CC-3-369
• Format: Word; Rich Text

Description

This sample form, a detailed Amendment to Articles of Incorporation re: Paying Distributions Out of Any Funds Legally Available document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Houston Texas Amendment to Articles of Incorporation refers to the process and changes made to the original articles filed with the State of Texas by a corporation operating in Houston. Specifically, this amendment pertains to the ability of the corporation to pay distributions out of any funds legally available. It enables the corporation to distribute profits or dividends to its shareholders or owners. In Houston, Texas, there are generally two types of Amendments to Articles of Incorporation related to paying distributions out of legally available funds. These are as follows: 1. Permissible Distribution Amendment: This type of amendment allows a corporation to make distributions to its shareholders under certain conditions and within legal limits. It defines the guidelines and rules for making distributions while ensuring compliance with relevant laws and regulations. Shareholders' consent and adherence to statutory requirements are essential for this type of amendment. 2. Prohibited Distribution Amendment: Sometimes, a corporation may face financial distress or legal limitations that restrict its ability to make distributions to shareholders. In such cases, a Prohibited Distribution Amendment may be pursued. This amendment specifies the circumstances under which the corporation is not permitted to distribute any funds, protecting the corporation's financial interests and ensuring legal compliance. The Houston Texas Amendment to Articles of Incorporation regarding paying distributions out of any funds legally available therefor is a critical step for corporations desiring to manage their financial affairs responsibly and optimize returns for their shareholders.

Houston Texas Amendment to Articles of Incorporation refers to the process and changes made to the original articles filed with the State of Texas by a corporation operating in Houston. Specifically, this amendment pertains to the ability of the corporation to pay distributions out of any funds legally available. It enables the corporation to distribute profits or dividends to its shareholders or owners. In Houston, Texas, there are generally two types of Amendments to Articles of Incorporation related to paying distributions out of legally available funds. These are as follows: 1. Permissible Distribution Amendment: This type of amendment allows a corporation to make distributions to its shareholders under certain conditions and within legal limits. It defines the guidelines and rules for making distributions while ensuring compliance with relevant laws and regulations. Shareholders' consent and adherence to statutory requirements are essential for this type of amendment. 2. Prohibited Distribution Amendment: Sometimes, a corporation may face financial distress or legal limitations that restrict its ability to make distributions to shareholders. In such cases, a Prohibited Distribution Amendment may be pursued. This amendment specifies the circumstances under which the corporation is not permitted to distribute any funds, protecting the corporation's financial interests and ensuring legal compliance. The Houston Texas Amendment to Articles of Incorporation regarding paying distributions out of any funds legally available therefor is a critical step for corporations desiring to manage their financial affairs responsibly and optimize returns for their shareholders.