Tex. Business Organizations Code § 22.054
This is the official text of Tex. Business Organizations Code § 22.054, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 22.054. AUTHORIZED BENEFITS AND DISTRIBUTIONS.
Official statutory text
A corporation may:
(1) pay compensation in a reasonable amount to the members, directors, or officers of the corporation for services provided;
(2) confer benefits on the corporation's members in conformity with the corporation's purposes;
(3) make distributions to the corporation's members on winding up and termination to the extent authorized by this chapter; and
(4) make distributions of its income to the corporation's members who are nonprofit corporations organized under this code and who are exempt from income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed under Section 501(c)(3) of that code, if:
(A) the distributions are made in accordance with the purpose or purposes of the corporation as stated in the certificate of formation and with the fiduciary responsibilities of the board of directors, including the duty to safeguard restricted funds for their intended purposes; and
(B) after the distributions are complete:
(i) the corporation would be able to pay the corporation's debts as they become due in the usual course of its activities; and
(ii) the corporation's total assets would at least equal the sum of its total liabilities.
(1) pay compensation in a reasonable amount to the members, directors, or officers of the corporation for services provided;
(2) confer benefits on the corporation's members in conformity with the corporation's purposes;
(3) make distributions to the corporation's members on winding up and termination to the extent authorized by this chapter; and
(4) make distributions of its income to the corporation's members who are nonprofit corporations organized under this code and who are exempt from income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed under Section 501(c)(3) of that code, if:
(A) the distributions are made in accordance with the purpose or purposes of the corporation as stated in the certificate of formation and with the fiduciary responsibilities of the board of directors, including the duty to safeguard restricted funds for their intended purposes; and
(B) after the distributions are complete:
(i) the corporation would be able to pay the corporation's debts as they become due in the usual course of its activities; and
(ii) the corporation's total assets would at least equal the sum of its total liabilities.
Status: in_force · Read it on the official government site
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