Prohibited and authorized distributions.

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Effective - 28 Aug 2000

355.661. Prohibited and authorized distributions. — 1. Except as authorized by subsections 2, 3 and 4 of this section, a corporation shall not make any distributions.

2. A mutual benefit 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. Corporations may make distributions upon dissolution in conformity with sections 355.666 to 355.746.

4. Business entities established for the purpose of providing insurance pursuant to sections 537.620 and 537.635 may make distributions in conformity with those sections.

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(L. 1994 H.B. 1095, A.L. 2000 H.B. 1544)


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