Oklahoma § 18-1049

§ 18-1049.

Dividends - Payment - Wasting asset corporations.

DIVIDENDS; PAYMENT; WASTING ASSET CORPORATIONS

A. The directors of every corporation, subject to any

restrictions contained in its certificate of incorporation, may

declare and pay dividends upon the shares of its capital stock,

either out of its surplus, as defined in and computed in accordance

with the provisions of Sections 1035 and 1079 of this title, or in

case there is no surplus, out of its net profits for the fiscal year

in which the dividend is declared or the preceding fiscal year. If

the capital of the corporation, computed in accordance with the

provisions of Sections 1035 and 1079 of this title, shall have been

diminished by depreciation in the value of its property, or by

losses, or otherwise, to an amount less than the aggregate amount of

the capital represented by the issued and outstanding stock of all

classes having a preference upon the distribution of assets, the

directors of the corporation shall not declare and pay out of the

net profits any dividends upon any shares of any classes of its

capital stock until the deficiency in the amount of capital

represented by the issued and outstanding stock of all classes

having a preference upon the distribution of assets shall have been

repaired. Nothing in this subsection shall invalidate or otherwise

affect a note, debenture, or other obligation of the corporation

paid by it as a dividend on shares of its stock, or any payment made

thereon, if at the time the note, debenture, or obligation was

delivered by the corporation, the corporation had either surplus or

net profits as provided in this subsection from which the dividend

could lawfully have been paid.

Oklahoma Statutes - Title 18. Corporations

B. Subject to any restrictions contained in its certificate of

incorporation, the directors of any corporation engaged in the

exploitation of wasting assets including, but not limited to, a

corporation engaged in the exploitation of natural resources or

other wasting assets, including patents, or engaged primarily in the

liquidation of specific assets, may determine the net profits

derived from the exploitation of wasting assets or the net proceeds

derived from liquidation without taking into consideration the

depletion of such assets resulting from lapse of time, consumption,

liquidation, or exploitation.

Added by Laws 1986, c. 292, § 49, eff. Nov. 1, 1986. Amended by

Laws 1998, c. 422, § 8, eff. Nov. 1, 1998; Laws 2001, c. 405, § 9,

eff. Nov. 1, 2001; Laws 2019, c. 88, § 9, eff. Nov. 1, 2019.