Code of Virginia § 13.1-814. Shares of stock and dividends prohibited.
141 words·~1 min read·
/va/title-13-1/chapter-10/13-1-814·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A corporation shall not issue shares of stock. No dividend shall be paid and no part of the income of a corporation shall be distributed to its members, directors or officers, except that a corporation may make distributions to another nonprofit corporation that is a member of such corporation or has the power to appoint one or more of its directors. A corporation may pay compensation in a reasonable amount to its members, directors or officers for services rendered, including pensions, may confer benefits upon its members in conformity with its purposes, and may make distributions to its members or others as permitted by this Act upon dissolution or final liquidation and no such payment, benefit or distribution shall be deemed to be a dividend or a distribution of income.
Code 1950, § 13.1-229; 1956, c. 428; 1985, cc. 380, 522.