Tex. Business Organizations Code § 2.111
This is the official text of Tex. Business Organizations Code § 2.111, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 2.111. LIMITATION ON POWERS OF COOPERATIVE ASSOCIATION.
Official statutory text
Except for the payment of necessary legal fees or promotion expenses, a cooperative association may not directly or indirectly use its funds, issue shares, or incur indebtedness for the payment of compensation for the organization of the cooperative association in excess of five percent of the amount paid for the shares or membership certificates involved in the promotion transaction.
Status: in_force · Read it on the official government site
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