HOUSE BILL NO. 412
INTRODUCED BY EBINGER, MOSS, AUGARE
AN ACT ALLOWING PUBLIC BENEFIT CORPORATIONS TO MAKE TRANSACTIONS WITH MEMBERS, DIRECTORS, OR OFFICERS IF IN CONFORMITY WITH ITS CHARITABLE PURPOSES UPON CERTAIN CONDITIONS; AND AMENDING SECTION 35-2-1401, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 35-2-1401, MCA, is amended to read:
"35-2-1401. Prohibited distributions -- permitted transactions. (1) Except as authorized by 35-2-1402, a corporation may not make any distributions.
(2) A public benefit corporation may, subject to the requirements of Title 15, chapter 31, and this chapter, as applicable:
(a) pay reasonable compensation or reimburse reasonable expenses to members, directors, or officers for services rendered; and
(b) confer benefits upon or make contributions to members in conformity with its charitable purposes if after the transaction is completed:
(i) the corporation would be able to pay its debts as they become due in the usual course of its activities; and
(ii) the corporation's total assets would at least equal the sum of its total liabilities."
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