(a) A corporation is nonprofit, and the corporation’s net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except as provided by Subsection (b).
(b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation’s expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation’s authorizing unit.

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Terms Used In Texas Local Government Code 501.053

  • 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.