Montana § 35-2-1401 Prohibited Distributions -- Permitted Transactions

Montana Statutes

§ 35-2-1401 — Prohibited Distributions -- Permitted Transactions

Montana·Title 35 CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS·Ch. 2 NONPROFIT CORPORATIONS·Part 14 Distributions

35-2-1401 . Prohibited distributions -- permitted transactions.

(1)Except as authorized by 35-2-1402 , a corporation may not make any distributions.

(2)A public benefit corporation may, subject to the requirements of Title 15, chapter 31, and this chapter, as applicable:

(a)pay reasonable compensation or reimburse reasonable expenses to members, directors, or officers for services rendered; and

(b)confer benefits upon or make contributions to members in conformity with its charitable purposes if after the transaction is completed:

(i)the corporation would be able to pay its debts as they become due in the usual course of its activities; and

(ii)the corporation's total assets would at least equal the sum of its total liabilities.

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

35-2-1401 . Prohibited distributions -- permitted transactions. (1) Except as authorized by 35-2-1402 , a corporation may not make any distributions.
(2) A public benefit corporation may, subject to the requirements of Title 15, chapter 31, and this chapter, as applicable:
(a) pay reasonable compensation or reimburse reasonable expenses to members, directors, or officers for services rendered; and
(b) confer benefits upon or make contributions to members in conformity with its charitable purposes if after the transaction is completed:
(i) the corporation would be able to pay its debts as they become due in the usual course of its activities; and
(ii) the corporation's total assets would at least equal the sum of its total liabilities.

Montana § 35-2-1401 (Prohibited Distributions -- Permitted Transactions) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.