Alabama § 10A-3-2.41 Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted

Alabama Statutes

§ 10A-3-2.41 — Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted

Alabama § 10A-3-2.41

JurisdictionAlabama

Title 10AAlabama Business and Nonprofit Entities Code

Ch. 3Nonprofit Corporations

Art. 2Substantive Provisions

Div. DEntity Specific Powers; Limitations

This text of Alabama § 10A-3-2.41 (Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 10A-3-2.41 (2026).

Text

A nonprofit corporation shall not have or issue shares of stock. No dividend shall be paid and no part of the income or profit of a nonprofit corporation shall be distributed to its members, directors or officers. A nonprofit corporation may pay compensation in a reasonable amount to its members, directors, or officers for services rendered, may confer benefits upon its members in conformity with its purposes, and upon dissolution or final liquidation may make distributions to its members as permitted by this chapter, and no payment, benefit, or distribution shall be deemed to be a dividend or a distribution of income or profit.

Free access — add to your briefcase to read the full text and ask questions with AI

A nonprofit corporation shall not have or issue shares of stock. No dividend shall be paid and no part of the income or profit of a nonprofit corporation shall be distributed to its members, directors or officers. A nonprofit corporation may pay compensation in a reasonable amount to its members, directors, or officers for services rendered, may confer benefits upon its members in conformity with its purposes, and upon dissolution or final liquidation may make distributions to its members as permitted by this chapter, and no payment, benefit, or distribution shall be deemed to be a dividend or a distribution of income or profit.