(a) Any nonprofit corporation formed pursuant to this chapter:
(1) Shall neither possess nor issue shares of stock; and
(2) Shall not pay dividends, or make any distribution of income to its members, directors or officers; and
(3) Shall not loan money or credit to its officers or directors; and
(4) May pay compensation only up to a reasonable amount to its members, directors, officers or agents for services rendered; and
(5) May confer benefits upon its members only in conformity with its purposes.
(b) Unless otherwise provided in its articles of incorporation or bylaws, a mutual benefit corporation may:
(1) Following dissolution, make distributions to its members as permitted by this chapter. No such distribution will be deemed to be a dividend or a distribution of income; and
(2) Periodically pay refunds to members for fees or dues actually paid in excess of the losses, expenses, and debts of the corporation. Such refunds will not be deemed to be a dividend or distribution of income.
(c) A public benefit corporation must, upon dissolution, distribute its assets for one or more purposes listed in the definition of “Public Benefit Corporation” (YTC 8.05.020); or, to the federal government; or, to a Tribal, state, or other local government, for a public purpose; or, by a court of competent jurisdiction to another organization to be used in such manner as, in the judgment of the court, will best accomplish the general purposes for which the dissolved organization was organized. [Ord. 18 Part VI § 3, adopted, 10/7/2008.]