36 U.S.C. § 130507 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 168 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law restricts Little League Baseball's activities. It cannot issue stock, back political candidates, or let income benefit insiders outside dissolution. It also cannot loan money to insiders without directors and officers being personally liable.

(a) Stock and Dividends. The corporation may not issue stock or declare or pay a dividend. (b) Political Activities. The corporation, or a director, officer, or agent acting as such, may not contribute to, support, or assist any political party or candidate for office. (c) Distribution of Income or Assets. The corporation's income and assets cannot benefit, or be distributed to, a director, officer, or member, while the corporation exists or when it dissolves or finally liquidates. This does not stop the corporation from paying an officer reasonable compensation in an amount the board of directors approves. (d) Loans. The corporation may not loan money to a director, officer, or employee. Directors who vote for or agree to such a loan, and officers who help make it happen, are all jointly and individually liable to the corporation for the loan's full amount until it's repaid.

the actual law source: uscode.house.gov ↗public domain

(a)Stock and Dividends.—

The corporation may not issue stock or declare or pay a dividend.

(b)Political Activities.—

The corporation or a director, officer, or agent as such may not contribute to, support, or assist any political party or candidate for office.

(c)Distribution of Income or Assets.—

The income and 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 corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer in an amount approved by the board of directors.

(d)Loans.—

The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1378.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1378

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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