(1) Except as otherwise provided in subsection (2) of this section, an unincorporated nonprofit association shall not pay dividends or make distributions to a member or manager.
(2) An unincorporated nonprofit association may:

Terms Used In Kentucky Statutes 273A.115

  • Governing principles: means the agreements, whether oral, in a record, or implied from its established practices, that govern the purpose or operation of an unincorporated nonprofit association and the rights and obligations of its members and manager. See Kentucky Statutes 273A.005
  • Manager: means a person that is responsible, whether alone or in concert with others, for the management of an unincorporated nonprofit association. See Kentucky Statutes 273A.005
  • Member: means a person that, under the governing principles, may participate in the selection of persons authorized to manage the affairs of the unincorporated nonprofit association or in the development of the policies and activities of the association. See Kentucky Statutes 273A.005
  • Unincorporated nonprofit association: means an unincorporated organization consisting of two (2) or more members joined under an agreement that is oral, in a record, or implied from conduct, for one (1) or more common, nonprofit purposes. See Kentucky Statutes 273A.005

(a) Pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;
(b) Confer benefits on a member or manager in conformity with its nonprofit purposes;
(c) Repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; or
(d) Make distributions of property to members upon winding up and termination to the extent permitted by KRS § 273A.130.
Effective: June 24, 2015
History: Created 2015 Ky. Acts ch. 34, sec. 34, effective June 24, 2015.

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