13.1-814 - Shares of stock and dividends prohibited. - Virginia Statutes

§ 13.1-814. Shares of stock and dividends prohibited.

A corporation shall not issue shares of stock. No dividend shall be paid andno part of the income of a corporation shall be distributed to its members,directors or officers, except that a corporation may make distributions toanother nonprofit corporation that is a member of such corporation or has thepower to appoint one or more of its directors. A corporation may paycompensation in a reasonable amount to its members, directors or officers forservices rendered, including pensions, may confer benefits upon its membersin conformity with its purposes, and may make distributions to its members orothers as permitted by this Act upon dissolution or final liquidation and nosuch payment, benefit or distribution shall be deemed to be a dividend or adistribution of income.

(Code 1950, § 13.1-229; 1956, c. 428; 1985, cc. 380, 522.)