(a) A corporation formed under this chapter shall automatically increase its capital stock at the rate of five percent of the amount of loans made by the corporation to shareholders of its common stock.
(b) The corporation’s articles of incorporation and bylaws must state the requirement of Subsection (a) of this section.

Terms Used In Texas Agriculture Code 54.008

  • 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.
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