Prohibited distributions – permitted transactions
(1) Except as authorized by 35-2-1402, a corporation may not make any distributions.
(2) A public benefit corporation may, subject to the requirements of Title 15, chapter 31, and this chapter, as applicable:
(a) pay reasonable compensation or reimburse reasonable expenses to members, directors, or officers for services rendered; and
(b) confer benefits upon or make contributions to members in conformity with its charitable purposes if after the transaction is completed:
(i) the corporation would be able to pay its debts as they become due in the usual course of its activities; and
(ii) the corporation's total assets would at least equal the sum of its total liabilities.
| EnactedEn. SectionSec. 132, ChapterCh. 411, Laws ofL. 1991 |
| AmendedAmd. SectionSec. 1, ChapterCh. 135, Laws ofL. 2007 (HB 412 - Ebinger, Bob (D) HD 62) |