§414D-232 Authorized distributions.

176 words·~1 min read·/hi/414d-232

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A corporation other than a public 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 be equal to at least the sum of its total liabilities.

(b)Corporations may make distributions upon dissolution in conformity with part XIII.

(c)The public benefit corporation, in conformity with its purposes, may make distributions to and confer benefits on a member or an affiliate that is another public benefit corporation if, after any distribution is completed:

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

(2)The public benefit corporation's total assets would be equal to at least the sum of its total liabilities. [L 2001, c 105, pt of §1; am L 2002, c 130, §58; am L 2010, c 43, §3; am L 2019, c 65, §7]