SEC. 79-11-293. Authorization for making distributions; conditions for corporation to purchase memberships.
(1) Except as authorized under subsections (2) and (3) of this section, a corporation shall not make any distributions.
(2) A corporation may purchase its memberships if after the purchase is completed:
(a) The corporation would be able to pay its debts as they become due in the usual course of its activities; and
(b) The corporation's total assets would at least equal the sum of its total liabilities.
(3) A corporation may make distributions upon dissolution in accordance with the provisions of Sections 79-11-101 et seq. relating to dissolution.
SOURCES: Laws, 1987, ch. 485, Sec. 97, eff from and after January 1, 1988.