§ 31231 Distribution Restrictions Shareholders

• •A company with a special license can't give money to its owners without asking the boss (commissioner) first.
• •The company must get permission before promising or giving any money to the people who own parts of the company.
• •This rule helps make sure the company doesn’t give away too much money and stay safe for everyone.

A bank wants to give some of its profits to the people who own shares in the bank.

The bank can’t just give the money away. It has to ask the commissioner first. If the bank gives money without asking, it’s breaking the rules.