Texas § 251.403 DISTRIBUTION OF ASSETS.

Texas Statutes

§ 251.403 — DISTRIBUTION OF ASSETS.

Texas § 251.403

Code BOBusiness Organizations Code

This text of Texas § 251.403 (DISTRIBUTION OF ASSETS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 251.403 (2026).

Text

Sec. 251.403. DISTRIBUTION OF ASSETS. Subject to Sections 11.052 and 11.053 (a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:

(1)by returning the par value of the investors' capital to investors;

(2)by returning the amounts paid on subscriptions to subscribers for invested capital;

(3)by returning the amount of patronage dividends credited to patrons' accounts to the patrons;

(4)by returning to members their membership capital; and

(5)by distributing any surplus in the manner provided by the certificate of formation:

(A)among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period; (

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

Sec. 251.403. DISTRIBUTION OF ASSETS. Subject to Sections 11.052 and 11.053 (a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:
(1) by returning the par value of the investors' capital to investors;
(2) by returning the amounts paid on subscriptions to subscribers for invested capital;
(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;
(4) by returning to members their membership capital; and
(5) by distributing any surplus in the manner provided by the certificate of formation:
(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;
(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or
(C) by a combination of both methods of distribution.

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737 ), Sec. 133, eff. September 1, 2007.