Rhode Island § 7-6-31 § 7-6-31. Dividends prohibited.

Rhode Island Statutes

§ 7-6-31 — § 7-6-31. Dividends prohibited.

Rhode Island § 7-6-31

Title 7Corporations, Associations and Partnerships

Ch. 7-6Rhode Island Nonprofit Corporation Act

This text of Rhode Island § 7-6-31 (§ 7-6-31. Dividends prohibited.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 7-6-31 (2026).

Text

§ 7-6-31. Dividends prohibited.
A corporation may issue shares to its members, but no dividend shall be paid on the
            shares and no part of the income or profit of a corporation shall be distributed to
            its members, directors, or officers, except that dividends may be paid and income
            or profit may be distributed to its members by a corporation all of the members of
            which are corporations to which this chapter applies. A 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 liquid

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§ 7-6-31. Dividends prohibited.

A corporation may issue shares to its members, but no dividend shall be paid on the shares and no part of the income or profit of a corporation shall be distributed to its members, directors, or officers, except that dividends may be paid and income or profit may be distributed to its members by a corporation all of the members of which are corporations to which this chapter applies. A 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 is deemed to be a dividend or a distribution of income or profit.