2010 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 3 - Corporations And Associations
Chapter 33 - The Arkansas Nonprofit Corporation Act of 1993
Subchapter 13 - Distributions
§ 4-33-1302 - Authorized distributions.

4-33-1302. Authorized distributions.

(a) A mutual benefit corporation may purchase its memberships if after the purchase is completed:

(1) the corporation would be able to pay its debts as they become due in the usual course of its activities; and

(2) the corporation's total assets would at least equal the sum of its total liabilities.

(b) Corporations may make distributions upon dissolution in conformity with 4-33-1401 et seq.

(c) Corporations that are organized and operated as cooperative within the meaning of Subchapter T of the Internal Revenue Code of 1986, as amended, Internal Revenue Code 1381 -- 1388, may make distributions to their members in accordance with Subchapter T.