Missouri Laws 355.661 – Prohibited and authorized distributions
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1. Except as authorized by subsections 2, 3 and 4 of this section, a corporation shall not make any distributions.
2. A mutual benefit corporation may purchase its memberships if after the purchase is completed:
Terms Used In Missouri Laws 355.661
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: public benefit and mutual benefit corporations. See Missouri Laws 355.066
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(1) The corporation would be able to pay its debts as they become due in the usual course of its activities; and
(2) The corporation’s total assets would at least equal the sum of its total liabilities.
3. Corporations may make distributions upon dissolution in conformity with sections 355.666 to 355.746.
4. Business entities established for the purpose of providing insurance pursuant to sections 537.620 and 537.635 may make distributions in conformity with those sections.