371.150. Accumulation of earned surplus, requirements. - Missouri Statutes

Accumulation of earned surplus, requirements.

371.150. The corporation shall set apart as an earnedsurplus seventy-five percent of its net earnings each year untilsuch earned surplus equals the total of the paid-in capital andpaid-in surplus then outstanding. The earned surplus shall beheld in cash or invested in obligations of the United Statesgovernment, and shall be kept and used to meet losses andcontingencies of the corporation, and, whenever the amount of theearned surplus shall become impaired, it shall be built up againto the required amount in the manner provided for its originalaccumulation. Earned surplus not required to be accumulatedshall be available for the payment of such dividends as the boardof directors shall deem expedient.

(L. 1961 p. 157 § 14, A.L. 1963 p. 478)