36 U.S.C. § 110107 — Restrictions
submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 128 words · no verdicts yet
This section restricts what the corporation can do. It cannot issue stock, pay dividends, or make loans to its directors, officers, or employees. Its income cannot benefit directors, officers, or members, and it cannot claim congressional approval for its activities.
(a) Stock and Dividends.— The corporation cannot issue stock, or declare or pay a dividend.
(b) Distribution of Income or Assets.— The corporation's income or assets cannot benefit or go to a director, officer, or member while the charter under this chapter is active. This does not stop the corporation from paying reasonable compensation to an officer, or reimbursing actual necessary expenses, if the board of directors approves the amount.
(c) Loans.— The corporation cannot make a loan to a director, officer, or employee.
(d) Claim of Governmental Approval or Authority.— The corporation cannot claim that Congress approved its activities, or that it has the authority of the United States government, for anything it does.
The corporation may not issue stock or declare or pay a dividend.
The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the board of directors.
The corporation may not make a loan to a director, officer, or employee.
The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.
Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1368.)
- 1998Enacted · Pub. L. 105-225 · 112 Stat. 1368
A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-225 on 1998-08-12.
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