Tex. Bus. Orgs. Code § 22.054 · Subchapter B. PURPOSES AND POWERS
AUTHORIZED BENEFITS AND DISTRIBUTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
A corporation may:
(1) pay compensation in a reasonable amount to the members, directors, or officers of the corporation for services provided;
(2) confer benefits on the corporation's members in conformity with the corporation's purposes;
(3) make distributions to the corporation's members on winding up and termination to the extent authorized by this chapter; and
(4) make distributions of its income to the corporation's members who are nonprofit corporations organized under this code and who are exempt from income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed under Section 501(c)(3) of that code, if:
(A) the distributions are made in accordance with the purpose or purposes of the corporation as stated in the certificate of formation and with the fiduciary responsibilities of the board of directors, including the duty to safeguard restricted funds for their intended purposes; and
(B) after the distributions are complete:
(i) the corporation would be able to pay the corporation's 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.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 121 (S.B. 1233), Sec. 3, eff. May 23, 2015.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.22.htm
- Text hash
- sha256 a87758479db34e2931ee2d081da8e7da47ea5c7432b8d1b9621ca0f38d574d3f
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 2 provisions
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 22.054. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.