Arizona Laws 10-11302. Authorized distributions
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A. A corporation may purchase its memberships if after the purchase is completed both:
Terms Used In Arizona Laws 10-11302
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Distribution: means a direct or indirect transfer of money or other property, except its own shares, or incurrence of indebtedness by a corporation to or for the benefit of its shareholders in respect of any of its shares. See Arizona Laws 10-140
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
1. The corporation would be able to pay its debts as the debts become due in the usual course of its activities.
2. The corporation’s total assets would at least equal the sum of its total liabilities.
B. A corporation may make distributions on dissolution that conform to chapter 37 of this title.
C. A corporation may make distributions to members who are domestic or foreign nonprofit corporations if after the distribution is made both:
1. The corporation would be able to pay its debts as the debts become due in the usual course of its activities.
2. The corporation’s total assets would at least equal the sum of its total liabilities.