273A.115 Distribution prohibited -- Compensation and other permitted payments. (1) Except as otherwise provided in subsection (2) of this section, an unincorporated nonprofit association shall not pay dividends or make distributions to a member or manager. (2) An unincorporated nonprofit association may: (a) Pay reasonable compensati on or reimburse reasonable expenses to a member or manager for services rendered; (b) Confer benefits on a member or manager in conformity with its nonprofit purposes; (c) Repurchase a membership and repay a capital contribution made by a member to the ext ent authorized by its governing principles; or (d) Make distributions of property to members upon winding up and termination to the extent permitted by KRS 273A.130. Effective: June 24, 2015 History: Created 2015 Ky. Acts ch. 34, sec. 34, effective June 24 , 2015.
Kentucky Legal Code