Authorization for making distributions; conditions for corporation to purchase memberships

1. Law
2. Mississippi Code
3. Corporations, Associations, and Partnerships
4. Nonprofit, Nonshare Corporations and Religious Societies
5. Mississippi Nonprofit Corporation Act
6. Authorization for making distributions; conditions for corporation to purchase memberships

1. Except as authorized under subsections (2) and (3) of this section, a corporation shall not make any distributions.
2. A corporation may purchase its memberships if after the purchase is completed:
   1. The corporation would be able to pay its debts as they become due in the usual course of its activities; and
   2. The corporation's total assets would at least equal the sum of its total liabilities.
3. A corporation may make distributions upon dissolution in accordance with the provisions of Section 79-11-101 et seq. relating to dissolution.

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