Tex. Business Organizations Code § 251.403
This is the official text of Tex. Business Organizations Code § 251.403, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 251.403. DISTRIBUTION OF ASSETS.
Official statutory text
Subject to Sections 11.052 and 11.053(a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:
(1) by returning the par value of the investors' capital to investors;
(2) by returning the amounts paid on subscriptions to subscribers for invested capital;
(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;
(4) by returning to members their membership capital; and
(5) by distributing any surplus in the manner provided by the certificate of formation:
(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;
(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or
(C) by a combination of both methods of distribution.
(1) by returning the par value of the investors' capital to investors;
(2) by returning the amounts paid on subscriptions to subscribers for invested capital;
(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;
(4) by returning to members their membership capital; and
(5) by distributing any surplus in the manner provided by the certificate of formation:
(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;
(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or
(C) by a combination of both methods of distribution.
Status: in_force · Read it on the official government site
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