36 U.S.C. § 31106 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 177 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law limits what the corporation can do with money and power. It cannot issue stock, pay dividends, or get involved in politics. It also cannot let its income benefit insiders, or lend them money.

(a) Stock and Dividends. The corporation cannot issue stock or declare or pay a dividend. (b) Political Activities. The corporation, and a director or officer acting in that role, cannot contribute to, support, or assist a political party or candidate for public office. (c) Distribution of Income or Assets. While the corporation exists, or when it dissolves or is finally liquidated, its income or assets cannot benefit or be distributed to a director, officer, or member in that role. This does not prevent paying an officer compensation in an amount approved by the board of directors. (d) Loans. The corporation cannot make a loan or advance to a director, officer, or employee. Directors who vote for or agree to such a loan or advance, and officers who participate in making it, are jointly and individually liable to the corporation for the amount until it is 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 or officer as such may not contribute to, support, or assist a political party or candidate for public office.

(c)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, or member as such during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of compensation to an officer in an amount approved by the board of directors.

(d)Loans.—

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

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1328.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1328

A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-225 on 1998-08-12.

all 0 arguments · sorted by: best

no arguments yet — make the first case