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Texas Business Organizations Code - Section 2.111. Limitation On Powers Of Cooperative Association

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 2.111. Limitation On Powers Of Cooperative Association

§ 2.111. LIMITATION ON POWERS OF COOPERATIVE 
ASSOCIATION.  Except for the payment of necessary legal fees or 
promotion expenses, a cooperative association may not directly or 
indirectly use its funds, issue shares, or incur indebtedness for 
the payment of compensation for the organization of the cooperative 
association in excess of five percent of the amount paid for the 
shares or membership certificates involved in the promotion 
transaction.

Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.                     

Last modified: August 11, 2007