South Carolina Statutes

§ 33-31-1302 — Authorized distributions.

South Carolina·Title 33 CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS·Ch. 31 SOUTH CAROLINA NONPROFIT CORPORATION ACT
(a)A mutual benefit corporation may purchase its memberships if after the purchase is completed:
(1)the corporation would be able to pay its debts as they become due in the usual course of its activities; and (2) the corporation's total assets would at least equal the sum of its total liabilities.
(b)Corporations may make distributions upon dissolution in conformity with Sections 33-31-1401 through 33-31-1440 of this chapter.
(c)The board of directors may base a determination that a distribution is not prohibited under subsection (a) either on financial statements prepared on the basis of accounting practices and principals that are reasonable in the circumstances or on a fair valuation or other method that is reasonable in the circumstances.

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Legislative History

HISTORY: 1994 Act No. 384, SECTION 1. ARTICLE 14 Dissolution

Nearby Sections

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