As Amended
SEC. 79-5-25. Earned surplus.
Each year the corporation shall set apart as earned surplus not less than ten per cent (10%) of its net earnings for the preceding fiscal year until such surplus shall be equal in value to the amount paid in on the capital stock then outstanding. Whenever the amount of surplus established herein shall become impaired, it shall be built up to the required amount in the manner provided for its original accumulation. Net earnings and surplus shall be determined by the board of directors, or by the executive committee when joint control is being exercised, after providing for such reserve as the directors, or the executive committee, as the case may be, may deem desirable, and the directors', or executive committee's determination made in good faith shall be conclusive on all persons.
SOURCES: Codes, 1942, Sec. 5390-13; Laws, 1960, ch. 186, Sec. 13, eff from and after passage (approved March 23, 1960).