Mo. Rev. Stat. » Chapter 351
Missouri Revised Statutes

Mo. Rev. Stat. § 351.220 (2026)

Payment of dividends on shares of stock

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  351.220.  Payment of dividends on shares of stock. — The board of directors of a corporation may declare and the corporation may pay dividends on its shares in cash, property, or its own shares, subject to the following limitations and provisions:

  (1)  No dividend shall be declared or paid at a time when the net assets of the corporation are less than its stated capital or when the payment thereof would reduce the net assets of the corporation below its stated capital;

  (2)  If a dividend is declared out of the paid-in surplus of the corporation, whether created by reduction of stated capital or otherwise, the limitations contained in section 351.210 shall apply;

  (3)  If a dividend is declared payable in its own shares having a par value, such shares shall be issued at the par value thereof and there shall be transferred to stated capital at the time such dividend is declared an amount of surplus equal to the aggregate par value of the shares to be issued as a dividend;

  (4)  If a dividend is declared payable in its own shares, without par value, and such shares have a preferential right in the assets of the corporation in the event of its involuntary liquidation, such shares shall be issued at the liquidation value thereof, and there shall be transferred to stated capital at the time such dividend is declared, an amount of surplus equal to the aggregate preferential amount payable upon such shares in the event of involuntary liquidation;

  (5)  If a dividend is declared payable in its own shares without par value and none of such shares has a preferential right in the assets of the corporation in the event of its involuntary liquidation, such shares shall be issued at such value as shall be fixed by the board of directors by resolution at the time such dividend is declared, and there shall be transferred to stated capital, at the time such dividend is declared, an amount of surplus equal to the aggregate value so fixed in respect of such shares, and the amount per share transferred to stated capital shall be disclosed to the shareholders receiving such dividends concurrently with payment thereof;

  (6)  A split-up or division of issued shares into a greater number of shares of the same class shall not be construed to be a share dividend within the meaning of this section;

  (7)  No dividend shall be declared or paid contrary to any restrictions contained in the articles of incorporation.

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(L. 1943 p. 410 § 43, A.L. 1945 p. 696, A.L. 2001 S.B. 288)

Effective 7-01-01

Notes of Decisions
Cited in 3 cases, 1962–2019 · leading case: Hoffmann v. Hoffmann, 676 S.W.2d 817 (Mo. 1984).
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Hoffmann v. Hoffmann, 676 S.W.2d 817 (Mo. 1984). · cites it 8× “§ 351.220, RSMo 1978. [8] , [9] Missouri courts have not addressed the issue of whether retained earnings in a closely held corporation constitute marital property.”
Gen. Bancshares Corp. v. Comm'r, 39 T.C. 423 (Tax Ct. 1962). · cites it 2× “220 , provides in part as follows: "Payment of dividends on outstanding shares of stock. "The board of directors of a corporation may declare and the corporation may pay dividends on its outstanding shares in cash, property, or its own shares, subject to the following…”
S.M.S. v. J.B.S., No. ED105760 (Mo. Ct. App. July 30, 2019). · cites it 9× “8 (citing section 351.220 RSMo 1978 and Brown v. Luce Mfg.”
Mo. Rev. Stat. § 351.220(3): 1 case
S.M.S. v. J.B.S., No. ED105760 (Mo. Ct. App. July 30, 2019). “8 (citing section 351.220 RSMo 1978 and Brown v. Luce Mfg.”
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