---
title: O.C.G.A. § 7-1-461. Distribution upon reduction of capital stock or paid-in capital.
collection: code
id: 7-1-461
cite_as: O.C.G.A. § 7-1-461 (2025)
canonical_url: https://georgiacommons.org/code/7-1-461
md_url: https://georgiacommons.org/code/7-1-461.md
text_url: https://georgiacommons.org/code/7-1-461/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t7-t8-(v5)-2024-pdf.pdf?sfvrsn=6386add7_0#page=259
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/7-1.md
previous: https://georgiacommons.org/code/7-1-460.md
next: https://georgiacommons.org/code/7-1-462.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: BANKING AND FINANCE / FINANCIAL INSTITUTIONS / BANKS AND TRUST COMPANIES / DIVIDENDS, DISTRIBUTIONS, AND PREFERRED SHARE ACQUISITION
---

# O.C.G.A. § 7-1-461. Distribution upon reduction of capital stock or paid-in capital.

(a) Upon the decrease of capital stock of a bank or trust company pursuant to amendment of its articles as provided in this chapter, the board of directors, subject to restrictions of the articles, may distribute to the shareholders of the bank or trust company an amount in cash equal to all or part of the amount of the decrease in capital stock, if immediately after such distribution the bank or trust company would have the capital stock required by this chapter.

(b) Any portion of the amount of a decrease in capital stock which is not distributed to shareholders in accordance with this Code section shall be transferred to paid-in capital.

(c) A bank or trust company, by resolution of its board of directors, may distribute to its shareholders amounts representing a reduction in its paid-in capital, provided that such distribution shall first be approved in writing by the department.

## History

Code 1933, § 41A-2102, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 2019, p. 828, § 14/HB 185.