Sec. 2.111. LIMITATION ON POWERS OF COOPERATIVE ASSOCIATION. Except for the payment of necessary legal fees or promotion expenses, a cooperative association may not directly or indirectly use its funds, issue shares, or incur indebtedness for the payment of compensation for the organization of the cooperative association in excess of five percent of the amount paid for the shares or membership certificates involved in the promotion transaction.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 2 - Purposes and Power of Domestic Entity
Subchapter B. Powers of Domestic Entity
Section 2.102. Additional Powers of Nonprofit Entity or Institution
Section 2.103. Power to Incur Indebtedness
Section 2.104. Power to Make Guaranties
Section 2.105. Additional Powers of Certain Pipeline Businesses
Section 2.106. Power of Nonprofit Corporation to Serve as Trustee
Section 2.108. Powers of Professional Association
Section 2.109. Powers of Professional Corporation
Section 2.110. Powers of Cooperative Association
Section 2.111. Limitation on Powers of Cooperative Association
Section 2.112. Stated Powers in Subchapter Sufficient
Section 2.113. Limitation on Powers
Section 2.114. Certificated Indebtedness; Manner of Issuance; Signature and Seal