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Official Code of Georgia Annotated

Title 14. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS · Chapter 2. BUSINESS CORPORATIONS · Article 6. SHARES AND DISTRIBUTIONS · Part 3. SUBSEQUENT ACQUISITION OF SHARES BY SHAREHOLDERS AND CORPORATION

14-2-631. Corporation’s acquisition of its own shares.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (a)

    A corporation may acquire its own shares and shares so acquired constitute authorized but unissued shares, unless the articles of incorporation provide that reacquired shares become treasury shares or prohibit the reissue of reacquired shares.#

  2. (b)

    If the articles of incorporation prohibit the reissue of acquired shares, the number of authorized shares is reduced by the number of shares acquired, effective upon amendment of the articles of incorporation.#

  3. (c)

    The board of directors may adopt articles of amendment under this Code section without shareholder action. The articles must set forth:#

    1. (1)

      The reduction in the number of authorized shares, itemized by class and series; and#

    2. (2)

      The total number of authorized shares, itemized by class and series, remaining after reduction of the shares.#

  4. (d)

    The board of directors may adopt articles of amendment providing that reacquired shares become treasury shares without shareholder action.#

  5. (e)

    A corporation may create security interests in treasury shares.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 14-2-631, enacted by Ga. L. 1988, p. 1070, § 1; Ga. L. 1989, p. 946, § 20; Ga. L. 1997, p. 1165, § 3.

Law reviews

For article discussing the rights of a corporation to acquire, encumber, and dispose of its own shares under the Georgia Business Corporation Code, see 3 Ga. L. Rev. 11 (1968). For article discussing treasury shares and restrictions placed upon their use by the corporation, see 3 Ga. L. Rev. 11 (1968). For article discussing ‘‘earned’’ surplus and ‘‘capital’’ surplus concepts under Georgia Business Corporation Code, see 3 Ga. L. Rev. 11 (1968). For article discussing the issuance of and limitations on redeemable shares under the Georgia Business Corporation Code, see 3 Ga. L. Rev. 11 (1968). For article, ‘‘Estate Planning: The Use of Insurance to Fund Stock Purchase Agreements,’’ see 9 Ga. St. B. J. 303 (1973). For article, ‘‘Some Distinctive Features of the Georgia Business Corporation Code,’’ 28 Ga. St. B. J. 101 (1991).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t14-(v12)-2017-pdf.pdf, Volume V12, 2017 edition, pages 145 to 146; merge action: carried; file SHA-256 f2fad2b71b39.