Arkansas § 4-28-626 Distributions prohibited; Compensation and other permitted payments

Arkansas Statutes

§ 4-28-626 — Distributions prohibited; Compensation and other permitted payments

Arkansas § 4-28-626

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This text of Arkansas § 4-28-626 (Distributions prohibited; Compensation and other permitted payments) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 4-28-626 (2026).

Text

(a)Except as otherwise provided in subsection (b), an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager.

(b)An unincorporated nonprofit association may:

(1)pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;

(2)confer benefits on a member or manager in conformity with its nonprofit purposes;

(3)repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; or (4) make distributions of property to members upon winding up and termination to the extent permitted by § 4-28-629 .

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(a) Except as otherwise provided in subsection (b), an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager. (b) An unincorporated nonprofit association may: (1) pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered; (2) confer benefits on a member or manager in conformity with its nonprofit purposes; (3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; or (4) make distributions of property to members upon winding up and termination to the extent permitted by § 4-28-629 .