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What are the current state statues for the state of NC for

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paying shareholders when the company...
What are the current state statues for the state of NC for paying shareholders when the company is making a profit, fora small non-public company? Isn't it 30-50 % of the profits? Isn't it paid out by the President, when that President is given the ability to do so in the company by-laws?
Submitted: 4 years ago.Category: Business Law
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2/1/2013
Business Lawyer: CalAttorney2, Attorney replied 4 years ago
CalAttorney2
CalAttorney2, Attorney
Category: Business Law
Satisfied Customers: 10,244
Experience: I am a businesses law attorney, with experience advising and representing owners and investors.
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William B. Esq. :

Dear Customer,

I there is no general state statute requiring the distribution of profits or dividends to shareholders (that is a business judgment decision left to the Board or governing body - or it is controlled by the governing documents), but the Statute governing distribution to shareholders in North Carolina is GS 55-6-40 (http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_55/GS_55-6-40.html).


The general statutes governing corporations in North Carolina can be found here: http://www.ncga.state.nc.us/gascripts/statutes/StatutesTOC.pl?Chapter=0055


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Please keep in mind that this information cannot be construed as specific legal advice or instruction, I do not know everything that you know, and I cannot make a full legal analysis – furthermore, I am prohibited from practicing law through this forum. I do hope that by providing these legal principles that you will have a better understanding of the law and that you can apply this to your own situation.

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Business Lawyer: CalAttorney2, Attorney replied 4 years ago

Dear Sarah,

My system shows you as “offline.” I have moved your question to our “Q&A” format to ensure that you are able to review my response and ask any questions you may have (or to follow up if I misunderstood or missed what you were asking for in the first place, as this sometimes happens in this type of forum).

I will respond to any questions you may have promptly, and will do my best to ensure that you receive the best answer possible.

Once I have answered your questions, please do not forget to rate my response so that I can receive credit for it.

Best regards, and thank you,

Bill

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Business Lawyer: CalAttorney2, Attorney replied 4 years ago

Dear Sarah,

I just wanted to follow up on your legal matter. I hope that my information was of some assistance. Please let me know if you have any further questions.

If you do not have any further questions, and have not yet had the opportunity, please do not forget to rate my response.

Very Truly Yours,

Bill

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