Alabama § 10A-3-2.41 - Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted.
Full text of Alabama Code of Alabama § 10A-3-2.41 — Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted., with citation guidance and answers to common questions.
§ 10A-3-2.41. Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted.
A nonprofit corporation shall not have or issue shares of stock. No dividend shall be paid and no part of the income or profit of a nonprofit corporation shall be distributed to its members, directors or officers. A nonprofit corporation may pay compensation in a reasonable amount to its members, directors, or officers for services rendered, may confer benefits upon its members in conformity with its purposes, and upon dissolution or final liquidation may make distributions to its members as permitted by this chapter, and no payment, benefit, or distribution shall be deemed to be a dividend or a distribution of income or profit.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 10A-3-2.41
What does Code of Alabama § 10A-3-2.41 cover?
Section 10A-3-2.41 ("Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 10A-3-2.41?
A common citation format is "Code of Alabama § 10A-3-2.41" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 10A-3-2.41 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.