Approval of director required for unusually large dividends.

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51A-3-19. Approval of director required for unusually large dividends.

The approval of the director is required before a dividend is declared if the total of all dividends, including the proposed dividend, declared by the directors of a bank in any calendar year exceeds the total of its net profits of that year to date combined with its retained net profits of the preceding two years, less any required transfers to surplus or a fund for the retirement of any preferred stock.

Source: SL 1969, ch 11, §3.10; SDCL, §§51-17-11, 51-17-20.4; SL 1991, ch 390, §2.


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