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36 U.S.C. § 170106Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 175 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation may not operate for profit, issue stock, engage in specified political activity, distribute income or assets to insiders, or make certain loans. Directors and participating officers are jointly and individually responsible for certain unpaid loans.

(a) Profit — The corporation may not conduct business for profit. (b) Stock — The corporation may not issue stock. (c) Political Activities — The corporation must be nonpolitical. It may not give financial help to, or otherwise promote the candidacy of, a person seeking public office. (d) Distribution of Income or Assets — During the corporation's existence or when it is dissolved or finally liquidated, its income or assets may not benefit or be distributed to a director, officer, member, or employee. This does not prevent reasonable compensation for an officer or employee, or reimbursement for actual necessary expenses, in amounts approved by the board of directors. (e) Loans — The corporation may not lend money to a director, officer, member, or employee. Directors who vote for or agree to such a loan, and officers who take part in making it, are jointly and individually responsible to the corporation for the loan amount until it is repaid.
the actual law source: uscode.house.gov ↗public domain
(a)Profit.—

The corporation may not engage in business for profit.

(b)Stock.—

The corporation may not issue stock.

(c)Political Activities.—

The corporation shall be nonpolitical and may not provide financial aid to, or otherwise promote the candidacy of, an individual seeking public office.

(d)Distribution of Income or Assets.—

The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, member, or employee 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 or employee or reimbursement for actual necessary expenses in amounts approved by the board of directors.

(e)Loans.—

The corporation may not make a loan to a director, officer, member, or employee. Directors who vote for or assent to making such a loan, 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. 1441.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1441

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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