Alaska Statutes 10.06.365 – Prohibited distribution on junior shares; ratio of retained earnings
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Terms Used In Alaska Statutes 10.06.365
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- retained earnings: means the account of the corporation representing undistributed and uncapitalized net profits, income, gains, and losses from the date of incorporation. See Alaska Statutes 10.06.990
- shares: means the units into which the proprietary interests in a corporation are divided. See Alaska Statutes 10.06.990
A corporation or a subsidiary of a corporation may not make a distribution to the corporation’s shareholders on any shares of its stock of a class or series that is junior to outstanding shares of another class or series with respect to payment of dividends unless the amount of the retained earnings of the corporation immediately before the distribution equals or exceeds the amount of the proposed distribution plus the aggregate amount of the cumulative dividends in arrears on all shares having a preference with respect to payment of dividends over the class or series to which the distribution is made.