5551 - Dividends prohibited; compensation and certain payments authorized.

     § 5551.  Dividends prohibited; compensation and certain payments                authorized.        (a)  General rule.--A nonprofit corporation shall not pay     dividends or distribute any part of its income or profits to its     members, directors, or officers. Nothing herein contained shall     prohibit a fraternal benefit society operating under the     insurance laws of Pennsylvania from paying dividends or refunds     by whatever name known pursuant to the terms of its insurance     contracts.        (b)  Reasonable compensation for services.--A nonprofit     corporation may pay compensation in a reasonable amount to     members, directors, or officers for services rendered.        (c)  Certain payments authorized.--A nonprofit corporation     may confer benefits upon members or nonmembers in conformity     with its purposes, may repay capital contributions, and may     redeem its subvention certificates or evidences of indebtedness,     as authorized by this article, except when the corporation is     currently insolvent or would thereby be made insolvent or     rendered unable to carry on its corporate purposes, or when the     fair value of the assets of the corporation remaining after such     conferring of benefits, payment or redemption would be     insufficient to meet its liabilities. A nonprofit corporation     may make distributions of cash or property to members upon     dissolution or final liquidation as permitted by this article.     (July 30, 1975, P.L.128, No.63)        Cross References.  Section 5551 is referred to in sections     5545, 7112 of this title.