355.661. Prohibited and authorized distributions.

126 words·~1 min read·/mo/chapter-355/355-661

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355.661. Prohibited and authorized distributions. — 1. Except as authorized by subsections 2, 3 and 4 of this section, a corporation shall not make any distributions.

2. 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.

3. Corporations may make distributions upon dissolution in conformity with sections 355.666 to 355.746 .

4. Business entities established for the purpose of providing insurance pursuant to sections 537.620 and 537.635 may make distributions in conformity with those sections.

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(L. 1994 H.B. 1095, A.L. 2000 H.B. 1544)