79-11-293 - Authorization for making distributions; conditions for corporation to purchase memberships. - Mississippi Statutes

§ 79-11-293. Authorization for making distributions; conditions for corporation to purchase memberships.
 

(1)  Except as authorized under subsections (2) and (3) of this section, a corporation shall not make any distributions. 

(2)  A corporation may purchase its memberships if after the purchase is completed: 

(a) The corporation would be able to pay its debts as they become due in the usual course of its activities; and 

(b) The corporation's total assets would at least equal the sum of its total liabilities. 

(3)  A corporation may make distributions upon dissolution in accordance with the provisions of Section 79-11-101 et seq. relating to dissolution. 
 

Sources: Laws,  1987, ch. 485, § 97, eff from and after January 1, 1988.