1. (a) A corporation may not make a distribution that violates the corporation's certificate of formation.

2. (b) Unless the distribution is made in compliance with Chapter 11, a corporation may not make a distribution:

   1. (1) if the corporation would be insolvent after the distribution; or
   2. (2) that exceeds the distribution limit.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.