Restrictions

36 U.S.C. § 153707
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
(a) Stock and Dividends.—The corporation may not issue stock or declare or pay a dividend. (b) Political Activities.—The corporation or an officer or agent as such may not contribute to, support, or assist a political party or candidate for public office. (c) Distribution of Income or Assets.—The income or assets of the corporation may not inure to the benefit of, or be distributed to, an officer or member during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the council of administration of the corporation. (d) Loans.—The corporation may not make a loan or advance to an officer or member of the corporation. Members of the council of administration who vote for or assent to making a loan or advance to an officer or member, and officers who participate in making the loan or advance, are jointly and severally liable to the corporation for the amount of the loan or advance until it is repaid.

Starting a business? Corpus forms LLCs in all 50 states and DC.

36 U.S.C. § 153707 — Restrictions | United States Code | Corpus