§ 626.
Dividends; surplus fund
The directors of any corporation organized under the provisions of this subchapter may, semiannually, declare a dividend of so much of the net profits of the corporation as they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its capital stock.
Source
(Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered § 25A, Pub. L. 102–242, title I, § 142(e)(2),Dec. 19, 1991
, 105 Stat. 2281.)Notes
References in Text
This subchapter, referred to in text, was in the original “this section”, meaning section 25A of act
Dec. 23, 1913
, which is classified to this subchapter (§ 611 et seq.).Codification
Section is comprised of par. 18 (undesignated) of section 25A of act
Dec. 23, 1913
, which comprises this subchapter. For complete classification of section 25A of this Act, see Codification note set out under section 611 of this title.