A nonprofit corporation shall not have or issue shares of stock. No dividend shall be paid and no part of the income or profit of a nonprofit corporation shall be distributed to its members, directors or officers. A nonprofit corporation may pay compensation in a reasonable amount to its members, directors, or officers for services rendered, may confer benefits upon its members in conformity with its purposes, and upon dissolution or final liquidation may make distributions to its members as permitted by this chapter, and no payment, benefit, or distribution shall be deemed to be a dividend or a distribution of income or profit.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 3 - Nonprofit Corporations.
Article 2 - Substantive Provisions.
Division D - Entity Specific Powers; Limitations.
Section 10A-3-2.41 - Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted.
Section 10A-3-2.42 - Loans to Directors and Officers Prohibited.
Section 10A-3-2.43 - Power to Indemnify Directors or Officers.
Section 10A-3-2.44 - Assertion of Lack of Capacity or Power; Defense of Ultra Vires