Montana Code 35-2-1401. Prohibited distributions — permitted transactions
35-2-1401. Prohibited distributions — permitted transactions. (1) Except as authorized by 35-2-1402, a corporation may not make any distributions.
Terms Used In Montana Code 35-2-1401
- 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.
- Corporation: means a public benefit corporation, mutual benefit corporation, or religious corporation. See Montana Code 35-2-114
- Directors: means individuals:
(a)designated in the articles or bylaws or elected by the incorporators and their successors; and
(b)elected or appointed by any other name or title to act as members of the board. See Montana Code 35-2-114
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Usual: means according to usage. See Montana Code 1-1-206
(2)A public benefit corporation may, subject to the requirements of Title 15, chapter 31, and this chapter, as applicable:
(a)pay reasonable compensation or reimburse reasonable expenses to members, directors, or officers for services rendered; and
(b)confer benefits upon or make contributions to members in conformity with its charitable purposes if after the transaction is completed:
(i)the corporation would be able to pay its debts as they become due in the usual course of its activities; and
(ii)the corporation’s total assets would at least equal the sum of its total liabilities.