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

Arkansas Statutes

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

(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 .

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