Arkansas § 4-26-613 - Redeemable shares — Restrictions on redemption or purchase.
Full text of Arkansas Arkansas Code of 1987 Annotated § 4-26-613 — Redeemable shares — Restrictions on redemption or purchase., with citation guidance and answers to common questions.
§ 4-26-613. Redeemable shares — Restrictions on redemption or purchase.
A corporation shall not redeem its shares, or purchase its redeemable shares in lieu of redemption, if at the time of, or as a result of, such transaction: There is a reasonable ground for believing that the corporation would be unable to meet its obligations as they become due in the ordinary course of business; or The remaining assets of the corporation would be less than one and one-fourth (1¼) times the amount of its liabilities to creditors; or If by the redemption or purchase the net assets would be reduced below the aggregate amount payable to the holders of shares to remain outstanding which have prior or equal rights to the assets of the corporation upon dissolution; or If there exist any unpaid accrued preferential dividends with respect to any shares having priority as to dividends over the shares to be redeemed or purchased.
Source: official Arkansas text · Last verified 2026-08-27
Frequently Asked Questions About Arkansas § 4-26-613
What does Arkansas Code of 1987 Annotated § 4-26-613 cover?
Section 4-26-613 ("Redeemable shares — Restrictions on redemption or purchase.") is part of the Arkansas Code of 1987 Annotated, the codified statutory law of Arkansas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arkansas § 4-26-613?
A common citation format is "Arkansas Code of 1987 Annotated § 4-26-613" (Arkansas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arkansas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arkansas official source linked on this page or consult a licensed Arkansas attorney.
How does Arkansas § 4-26-613 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arkansas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arkansas.