Florida § 617.0608 - Purchase of memberships.

§ 617.0608. Purchase of memberships.

(1) A corporation described in s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, may not purchase the membership interests of any of its members or any right arising from membership. Any corporation that is not described in s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, may purchase the membership interest of any member or any right arising from membership to the extent provided in the articles of incorporation or bylaws. No such payment for purchase of membership interest or right arising from membership may be deemed a dividend or a distribution of income or earnings. (2) Subject to subsection (1), a corporation may purchase the membership interest of a member who resigns, or whose membership is terminated, for the amount and pursuant to the conditions set forth in its articles of incorporation or bylaws, but only if, after completing the purchase: (a) The corporation is able to pay its debts as they become due in the usual course of its activities; and (b) The total assets of the corporation are at least equal to the sum of its liabilities.