(a) Share structure.--The provisions of Subchapter B of Chapter 15 (relating to shares and other securities) shall not be applicable to a nonstock corporation. A nonstock corporation shall not create or issue shares.
(b) Corporate finance.--A patronage rebate or dividend that is, or is equivalent to, a reduction in the charge made by a nonstock corporation to a member for goods or services shall not constitute a dividend or distribution within the meaning of section 1551 (relating to distributions to shareholders).
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 21 - Nonstock Corporations
Section 2101 - Application and effect of chapter
Section 2102 - Formation of nonstock corporations
Section 2103 - Contents of articles and other documents of nonstock corporations
Section 2104 - Election of an existing business corporation to become a nonstock corporation
Section 2105 - Termination of nonstock corporation status
Section 2121 - Corporate name of nonstock corporations
Section 2122 - Classes of membership
Section 2123 - Evidence of membership; liability of members
Section 2124 - Voting rights of members
Section 2125 - Inapplicability of certain provisions to nonstock corporations