§ 7-6-31 - Dividends prohibited.
SECTION 7-6-31
§ 7-6-31 Dividends prohibited. – A corporation may issue shares to its members, but no dividend shall be paid onthe shares and no part of the income or profit of a corporation shall bedistributed to its members, directors, or officers, except that dividends maybe paid and income or profit may be distributed to its members by a corporationall of the members of which are corporations to which this chapter applies. Acorporation may pay compensation in a reasonable amount to its members,directors, or officers for services rendered, may confer benefits upon itsmembers in conformity with its purposes, and upon dissolution or finalliquidation may make distributions to its members as permitted by this chapter,and no payment, benefit, or distribution is deemed to be a dividend or adistribution of income or profit.