Superseded May 9, 2017.
16-6a-1302. Authorized
distributions.
(1) A nonprofit corporation may:
(a) make distributions or distribute the nonprofit
corporation's assets to a member:
(i) that
is a domestic or foreign nonprofit corporation;
(ii) of a
mutual benefit corporation, not inconsistent with its bylaws; or
(iii) that
is a governmental entity;
(b) pay compensation in a reasonable amount to its
members, directors, or officers for services rendered;
(c) if a cooperative nonprofit corporation, make
distributions consistent with its purposes; and
(d) confer benefits upon its members in conformity
with its purposes.
(2) A nonprofit
corporation may make distributions upon dissolution as follows:
(a) to
a member that is a domestic or foreign nonprofit corporation;
(b) to
its members if it is a mutual benefit corporation;
(c) to
another nonprofit corporation, including a nonprofit corporation organized to
receive the assets of and function in place of the dissolved nonprofit
corporation; and
(d) otherwise
in conformity with Part 14, Dissolution.
(3) Authorized
distributions by a dissolved nonprofit corporation may be made by authorized
officers or directors, including those elected, hired, or otherwise selected
after dissolution if the election, hiring, or other selection after dissolution
is not inconsistent with the articles of incorporation and bylaws existing at
the time of dissolution.