Sec. 67.008. DISTRIBUTION OF PROFITS. (a) The incorporators may provide in the charter of the corporation that a dividend will not be paid on the stock and that all profits of the corporation will be paid annually to political subdivisions, private corporations, or other persons that have transacted business with the corporation during the previous year.
(b) The corporation shall distribute any profits under Subsection (a) in direct proportion to the amount of business the corporation transacts with each entity during that year.
(c) The corporation may not make a distribution under Subsection (a) if the corporation has unpaid indebtedness.
(d) A corporation may allocate to a sinking fund an amount of the annual profits as determined necessary by the board for maintenance, operation, and replacements.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 2, eff. Sept. 1, 1997.
Structure Texas Statutes
Title 4 - General Law Districts
Chapter 67 - Nonprofit Water Supply or Sewer Service Corporations
Subchapter A. General Provisions
Section 67.002. Purpose of Corporation
Section 67.003. Creation of Corporation
Section 67.004. Application of Texas Non-Profit Corporation Act
Section 67.0051. Qualifications for Election or Appointment as Director
Section 67.0052. Ballot Application
Section 67.0054. Election Procedures
Section 67.0055. Election of Unopposed Candidate
Section 67.007. Annual or Special Meeting of Retail Corporation
Section 67.0075. Annual or Special Meeting of Other Corporation
Section 67.008. Distribution of Profits
Section 67.010. Power to Contract With Other Entities
Section 67.0105. Water for Fire Suppression
Section 67.011. Additional Powers of Corporation
Section 67.011. Powers of Corporation in Certain Counties
Section 67.012. Use of Manager
Section 67.013. Use of Counsel
Section 67.014. Depository for Funds; Permitted Investments
Section 67.015. Exemption From Securities Act
Section 67.016. Transfer or Cancellation of Stock, Membership, or Other Right of Participation
Section 67.017. Voluntary Contributions on Behalf of Emergency Services