US Laws, Codes, Statutes & Cases

 
  § 515. Dividends  prohibited;  certain distributions of cash or property
           authorized.
    (a) A corporation shall not pay dividends or distribute  any  part  of
  its income or profit to its members, directors, or officers.
    (b)  A  corporation  may  pay  compensation  in a reasonable amount to
  members, directors, or officers for  services  rendered,  and  may  make
  distributions  of  cash or property to members upon dissolution or final
  liquidation as permitted by this chapter.
    (c) A corporation may confer benefits upon members  or  nonmembers  in
  conformity  with  its  purposes,  may redeem its capital certificates or
  subvention certificates, and may make other  distributions  of  cash  or
  property  to its members or former members, directors, or officers prior
  to dissolution or final liquidation,  as  authorized  by  this  article,
  except  when  the corporation is currently insolvent or would thereby be
  made insolvent or rendered unable to carry on its corporate purposes, or
  when the fair value of the corporation's  assets  remaining  after  such
  conferring  of  benefits,  or redemption, or other distribution would be
  insufficient to meet its liabilities.