Tex. Local Government Code § 501.053
This is the official text of Tex. Local Government Code § 501.053, part of Texas’s Local Government Code — governs the powers and operations of Texas cities and counties.
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§ 501.053. CORPORATION NONPROFIT; NET EARNINGS.
Official statutory text
(a) A corporation is nonprofit, and the corporation's net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except as provided by Subsection (b).
(b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation's expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation's authorizing unit.
(b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation's expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation's authorizing unit.
Status: in_force · Read it on the official government site
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