Texas § AG.54.005 - CAPITAL STOCK
Full text of Texas The Texas Constitution § AG.54.005 — CAPITAL STOCK, with citation guidance and answers to common questions.
§ AG.54.005. CAPITAL STOCK
CAPITAL STOCK. (a) The incorporators or the board of directors of a corporation formed under this chapter may divide the corporation's capital stock into preferred and common stock. (b) If preferred stock is to be issued, the articles of incorporation must state: (1) the amount of preferred stock that the corporation may issue; (2) the conditions and procedure for the payment of dividends on preferred stock; (3) the rate at which preferred stock dividends are paid; and (4) the conditions and procedure for the retirement of preferred and common stock. (c) A corporation may not pay dividends on its common stock until it has fully paid dividends on its preferred stock at the rate provided by its articles of incorporation. Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
Frequently Asked Questions About Texas § AG.54.005
What does The Texas Constitution § AG.54.005 cover?
Section AG.54.005 ("CAPITAL STOCK") is part of the The Texas Constitution, the codified statutory law of Texas. 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 Texas § AG.54.005?
A common citation format is "The Texas Constitution § AG.54.005" (Texas). 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 Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § AG.54.005 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas 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 Texas.