2010 Pennsylvania Code
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 55 - Corporate Powers, Duties and Safeguards
5551 - Dividends prohibited; compensation and certain payments authorized.

     § 5551.  Dividends prohibited; compensation and certain payments
                authorized.
        (a)  General rule.--A nonprofit corporation shall not pay
     dividends or distribute any part of its income or profits to its
     members, directors, or officers. Nothing herein contained shall
     prohibit a fraternal benefit society operating under the
     insurance laws of Pennsylvania from paying dividends or refunds
     by whatever name known pursuant to the terms of its insurance
     contracts.
        (b)  Reasonable compensation for services.--A nonprofit
     corporation may pay compensation in a reasonable amount to
     members, directors, or officers for services rendered.
        (c)  Certain payments authorized.--A nonprofit corporation
     may confer benefits upon members or nonmembers in conformity
     with its purposes, may repay capital contributions, and may
     redeem its subvention certificates or evidences of indebtedness,
     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 assets of the corporation remaining after such
     conferring of benefits, payment or redemption would be
     insufficient to meet its liabilities. A nonprofit corporation
     may make distributions of cash or property to members upon
     dissolution or final liquidation as permitted by this article.
     (July 30, 1975, P.L.128, No.63)

        Cross References.  Section 5551 is referred to in sections
     5545, 7112 of this title.