Texas Business Organizations Code 251.301 – Limitations On Return On Capital
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(a) Except as otherwise provided by the cooperative association‘s bylaws, an investment dividend of a cooperative association may not be cumulative and may not exceed eight percent of investment capital.
(b) Total investment dividends distributed for a fiscal year may not exceed 50 percent of the net savings for the period.
Terms Used In Texas Business Organizations Code 251.301
- Association: means an entity governed as an association under Title 6 or 7. See Texas Business Organizations Code 1.002
- cooperative association: means an association governed as a cooperative association under Chapter 251. See Texas Business Organizations Code 1.002
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.