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Texas Business Organizations Code - Section 251.403. Distribution Of Assets

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 251.403. Distribution Of Assets

§ 251.403. DISTRIBUTION OF ASSETS.  Subject to Sections 
11.052 and 11.053(a), the trustees designated under Section 251.401 
shall distribute the cooperative association's assets in the 
following order:
		(1)  by returning the par value of the investors' 
capital to investors;     
		(2)  by returning the amounts paid on subscriptions to 
subscribers for invested capital;
		(3)  by returning the amount of patronage dividends 
credited to patrons' accounts to the patrons;
		(4)  by returning to members their membership capital;  
and                 
		(5)  by distributing any surplus in the manner provided 
by the certificate of formation:
			(A)  among the patrons who have been members or 
subscribers of the cooperative association during the six years 
preceding the date of dissolution, on the basis of patronage during 
that period;
			(B)  as a gift to any cooperative association or 
other nonprofit enterprise designated in the certificate of 
formation;  or
			(C)  by a combination of both methods of 
distribution.                     

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

Last modified: August 11, 2007