Indiana § 23-1-27-2 - Corporation acquiring its own shares
Full text of Indiana Indiana Code § 23-1-27-2 — Corporation acquiring its own shares, with citation guidance and answers to common questions.
§ 23-1-27-2. Corporation acquiring its own shares
Sec. 2. (a) A corporation may acquire its own shares. Unless a resolution of the board of directors or the corporation's articles of incorporation provide otherwise, shares so acquired constitute authorized but unissued shares.
(b) If the articles of incorporation prohibit the reissue of acquired shares, the number of authorized shares is reduced by the number of shares acquired, effective upon amendment of the articles of incorporation.
(c) Articles of amendment for purposes of subsection (b) may be adopted by the board of directors without shareholder action, shall be delivered to the secretary of state for filing, and shall set forth:
(1) the name of the corporation;
(2) the reduction in the number of authorized shares, itemized by class and series; and
(3) the total number of authorized shares, itemized by class and series, remaining after reduction of the shares.
(d) A corporation has authority to use, hold, acquire, cancel, and dispose of treasury shares (as defined in prior law).
(e) Unless the board of directors adopts an amendment to the corporation's articles of incorporation to reduce the number of authorized shares, treasury shares of the corporation that are cancelled shall be treated as authorized but unissued shares.
As added by P.L.149-1986, SEC.11. Amended by P.L.107-1987, SEC.6.
IC 23-1-28Chapter 28. Distributions to Shareholders
23-1-28-1Distributions 23-1-28-2Record date, declaration date, and payment date 23-1-28-3Prohibited distributions 23-1-28-4Basis for determination that distribution not prohibited 23-1-28-5Measuring effect of distribution; date 23-1-28-6Indebtedness to shareholder; priority
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 23-1-27-2
What does Indiana Code § 23-1-27-2 cover?
Section 23-1-27-2 ("Corporation acquiring its own shares") is part of the Indiana Code, the codified statutory law of Indiana. 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 Indiana § 23-1-27-2?
A common citation format is "Indiana Code § 23-1-27-2" (Indiana). 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 Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 23-1-27-2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana 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 Indiana.