A corporation, including a nonprofit corporation organized for or engaged in the business of developing, distributing, supplying, or delivering water for irrigation or domestic use, or both, may provide in its articles, or may amend its articles to provide, that its only purpose shall be to develop, distribute, supply, or deliver water for irrigation or domestic use, or both, to its members or shareholders, at actual cost plus necessary expenses.
The amendment of the articles may be accomplished by:
(a) The passage by a three-fourths vote of the members of the board of directors of the corporation of a resolution adopting as the purpose of the corporation the purpose set forth in this section.
(b) The signing, verification, and filing of a certificate setting forth the resolution and the manner of its adoption.
The corporation shall not distribute any gains, profits, or dividends to its members or shareholders except upon the dissolution of the corporation.
(Added by Stats. 1997, Ch. 598, Sec. 3. Effective January 1, 1998.)