Indiana Code Title 23. Business and Other Associations § 23-1-20-7
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Sec. 7. (a) “Distribution” means a direct or indirect transfer of money or other property (except a corporation's own shares) or incurrence or transfer of indebtedness by a corporation to or for the benefit of its shareholders in respect of any of its shares under IC 23-1-28. A distribution may be in the form of a declaration or payment of a dividend; a purchase, redemption, or other acquisition of shares; a distribution of indebtedness; or otherwise.
(b) The term does not include:
(1) amounts constituting reasonable compensation for past or present services or reasonable payments made in the ordinary course of business under a bona fide retirement plan or other benefit program; or
(2) the making of or payment or performance upon a bona fide guaranty or similar arrangement by a corporation to or for the benefit of its shareholders.
However, the failure of an amount to satisfy subdivision (1), or of a payment or performance to satisfy subdivision (2), is not determinative of whether the amount, payment, or performance is a distribution.
Cite this article: FindLaw.com - Indiana Code Title 23. Business and Other Associations § 23-1-20-7 - last updated June 08, 2021 | https://codes.findlaw.com/in/title-23-business-and-other-associations/in-code-sect-23-1-20-7/
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