Net income or loss for dividend period to be determined — income to be credited to surplus fund — undivided profits available for dividends.

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Effective - 28 Aug 2005

362.315. Net income or loss for dividend period to be determined — income to be credited to surplus fund — undivided profits available for dividends. — 1. To determine the amount of net income or loss for the dividend period, every bank or trust company shall account for all items of income and expense in accordance with regulatory instructions for completing reports of condition and income. When the net income or loss of a bank or trust company has been determined at the close of a dividend period, if its surplus fund does not equal forty percent of the capital of the bank or trust company, one-tenth of such net income shall be credited to the surplus fund or so much thereof, less than one-tenth, as will make the fund equal forty percent of the capital; provided, that until the capital and surplus fund of any bank or trust company now existing, the capital of which is not equal to the requirements of section 362.050, equals forty percent more than the minimum of capital for a bank or trust company in its location, one-tenth of its net income at the close of each dividend period shall be credited to the surplus fund.

2. The credit balance of the undivided profits account at the close of the dividend period may be available for dividends. The directors of any bank or trust company may from time to time declare such dividends as they shall judge expedient from the undivided profits.

3. No bank or trust company shall declare, credit or pay any dividend to its stockholders until it shall have made good any existing impairment of its capital, and all officers or directors of the bank or trust company who shall assent to declaring and paying a dividend while the capital stock is so impaired shall be jointly and severally liable to the creditors of the bank or trust company to the amount of the dividend for any loss resulting from the payment of the dividend.

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(RSMo 1939 § 7971, A.L. 1967 p. 445, A.L. 2005 H.B. 707)

Prior revisions: 1929 § 5376; 1919 § 11759


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