(a) Stock and Dividends.—The corporation may not issue stock or declare or pay a dividend.
(b) Political Activities.—The corporation or a director, officer, or agent as such may not contribute to, support, or assist a political party or candidate for office.
(c) Distribution of Income or Assets.—The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer in an amount approved by the board of directors.
(d) Loans.—The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.
Open Table
Historical and Revision Notes
|
Revised Section
|
Source (U.S. Code) |
Source (Statutes at Large) |
| 150906(a) |
36:4512. |
July 14, 1964, Pub. L. 88–376, §§9, 10, 12, 78 Stat. 322, 323. |
| 150906(b) |
36:4510. |
|
| 150906(c) |
36:4509(a). |
|
| 150906(d) |
36:4509(b). |
|
In subsection (a), the words "any shares of" are omitted as unnecessary.
In subsection (b), the words "duly appointed" are omitted as unnecessary.
In subsection (c), the words "inure to the benefit of" are substituted for "inure to" for consistency in the revised title.
