New York § 515 Dividends prohibited; certain distributions of cash or property authorized

New York Statutes

§ 515 — Dividends prohibited; certain distributions of cash or property authorized

New York § 515

Law NPCNot-for-Profit Corporation

Art. 5Corporate Finance

This text of New York § 515 (Dividends prohibited; certain distributions of cash or property authorized) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Not-for-Profit Corporation § 515 (2026).

Text

§ 515. Dividends prohibited; certain distributions of cash or property\n         authorized.\n  (a) A corporation shall not pay dividends or distribute any part of\nits income or profit to its members, directors, or officers.\n  (b) A corporation may pay compensation in a reasonable amount to\nmembers, directors, or officers, for services rendered, and may make\ndistributions of cash or property to members upon dissolution or final\nliquidation as permitted by this chapter. No person who may benefit from\nsuch compensation may be present at or otherwise participate in any\nboard or committee deliberation or vote concerning such person's\ncompensation; provided that nothing in this section shall prohibit the\nboard or authorized committee from requesting that a person who may\nbenefit from 

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§ 515. Dividends prohibited; certain distributions of cash or property\n authorized.\n (a) A corporation shall not pay dividends or distribute any part of\nits income or profit to its members, directors, or officers.\n (b) A corporation may pay compensation in a reasonable amount to\nmembers, directors, or officers, for services rendered, and may make\ndistributions of cash or property to members upon dissolution or final\nliquidation as permitted by this chapter. No person who may benefit from\nsuch compensation may be present at or otherwise participate in any\nboard or committee deliberation or vote concerning such person's\ncompensation; provided that nothing in this section shall prohibit the\nboard or authorized committee from requesting that a person who may\nbenefit from such compensation present information as background or\nanswer questions at a committee or board meeting prior to the\ncommencement of deliberations or voting relating thereto. Nothing in\nthis section or in paragraph (h) of section seven hundred fifteen of\nthis chapter shall be construed to prohibit a director from deliberating\nor voting concerning compensation for service on the board that is to be\nmade available or provided to all directors of the corporation on the\nsame or substantially similar terms.\n (c) A corporation may confer benefits upon members or nonmembers in\nconformity with its purposes, may redeem its capital certificates or\nsubvention certificates, and may make other distributions of cash or\nproperty to its members or former members, directors, or officers prior\nto dissolution or final liquidation, as authorized by this article,\nexcept when the corporation is currently insolvent or would thereby be\nmade insolvent or rendered unable to carry on its corporate purposes, or\nwhen the fair value of the corporation's assets remaining after such\nconferring of benefits, or redemption, or other distribution would be\ninsufficient to meet its liabilities.\n