Colorado § 11-42-104 - Participating and limited dividend shares.
Full text of Colorado Colorado Revised Statutes § 11-42-104 — Participating and limited dividend shares., with citation guidance and answers to common questions.
§ 11-42-104. Participating and limited dividend shares.
Shares may be issued to participate fully or to a limited extent in the net earnings of the association if the articles of incorporation so provide, and such participation shall be specified in the body of the certificate. All shares participating fully in net earnings shall be entitled to an equal rate of dividend, if earned, as fixed by the board of directors. Shares participating to a limited extent shall be entitled to such rate of dividend, if earned, as fixed by the board of directors for the semiannual periods ending June thirtieth and December thirty-first of each year; but, if the rate is decreased, the shareholders thus affected shall be given written notice of the new rate, within thirty days after date of declaration, by mailing such notice to their last-known addresses.
Source: L. 33: pp. 312-317, §§ 1-6. CSA: C. 25, § 19. L. 39: p. 248, § 19. L. 43: p. 202, § 4. CRS 53: § 122-3-4. L. 55: p. 762, § 8. C.R.S. 1963: § 122-3-4.
ANNOTATION
Directors must act reasonably and honestly in declaring dividends. A holder of a certificate is entitled only to the face value of the certificate plus the regular dividend and such extra dividends as the directors, acting honestly and reasonably and not fraudulently or capriciously, declare. Midland Sav. & Loan Co. v. Dunmire, 68 F.2d 249 (10th Cir. 1933).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 11-42-104
What does Colorado Revised Statutes § 11-42-104 cover?
Section 11-42-104 ("Participating and limited dividend shares.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. 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 Colorado § 11-42-104?
A common citation format is "Colorado Revised Statutes § 11-42-104" (Colorado). 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 Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 11-42-104 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado 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 Colorado.