§ 152507. Restrictions
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/usc/title-36/section-152507A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Stock and Dividends.— The corporation may not issue stock or declare or pay a dividend.
(b)Political Activities.— The corporation or a director, officer, or agent as such may not contribute to, support, or assist a political party or candidate for public office.
(c)Distribution of Income or Assets.— The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member except on dissolution or final liquidation of the corporation. This subsection does not prevent the payment of compensation to an officer in an amount approved by the board of directors.
(d)Loans.— The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.
(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1417.)
In subsection (a), the words “any shares of” are omitted as unnecessary.
In subsection (b), the word “public” is added for consistency in the revised title.
In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “as provided in section 476 of this title” are omitted as unnecessary. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” to eliminate unnecessary words. The words “board of directors” are substituted for “executive committee” because the source provisions for this chapter do not mention an executive committee and, under section 152504 of this title, the governing body of the corporation is the board of directors.
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U.S. Code
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- Pub. L. 105–225
- 112 Stat. 1417
- section 476 of this title
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§ 152507
Restrictions
Pub. L.Pub. L. 105–225
Stat.112 Stat. 1417
Citesection 476 of this title
Cites 4Cited by 0 across 0 sources