(a) By resolution of its board of directors, a corporation may apply any part of its capital surplus for:
- (1) The reduction or elimination of a corporate deficit arising from a loss, however incurred, or from diminution in the value of its assets, but only after earned surplus is exhausted; or
- (2) Any other proper corporate purpose.
- (b) An application of capital surplus under subsection (a) of this section shall be disclosed to the stockholders of the corporation in its next annual report.
Added by Acts 1975, c. 311, § 2, eff. July 1, 1975.
Formerly Art. 23, § 25.