Utah § 6a-1302 - Authorized distributions.

Full text of Utah Utah Code § 6a-1302 — Authorized distributions., with citation guidance and answers to common questions.

§ 6a-1302. Authorized distributions.

Effective 5/9/2017
16-6a-1302.  Authorized distributions.
(1) A nonprofit corporation may:
(a) make distributions or distribute the nonprofit corporation's assets to a:
(i) member that is a domestic or foreign nonprofit corporation;
(ii) member of a mutual benefit corporation, not inconsistent with its bylaws;
(iii) shareholder of a water company in a manner consistent with its articles of incorporation, bylaws, and the provisions of this chapter; or
(iv) governmental entity;
(b) pay compensation in a reasonable amount to its members, directors, or officers for services rendered;
(c) if a cooperative nonprofit corporation, make distributions consistent with its purposes; and
(d) confer benefits upon its members in conformity with its purposes.
(2) A nonprofit corporation may make distributions upon dissolution as follows:
(a) to a member that is a domestic or foreign nonprofit corporation;
(b) to its members if it is a mutual benefit corporation;
(c) to a shareholder of a water company in proportion to the shareholder's interest in the water company, consistent with the water company's articles of incorporation and bylaws;
(d) to another nonprofit corporation, including a nonprofit corporation organized to receive the assets of and function in place of the dissolved nonprofit corporation; and
(e) otherwise in conformity with Part 14, Dissolution.
(3) Authorized distributions by a dissolved nonprofit corporation may be made by authorized officers or directors, including those elected, hired, or otherwise selected after dissolution if the election, hiring, or other selection after dissolution is not inconsistent with the articles of incorporation and bylaws existing at the time of dissolution.


Amended by Chapter 358, 2017 General Session

Related Utah Legal Topics

Frequently Asked Questions About Utah § 6a-1302

What does Utah Code § 6a-1302 cover?

Section 6a-1302 ("Authorized distributions.") is part of the Utah Code, the codified statutory law of Utah. 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 Utah § 6a-1302?

A common citation format is "Utah Code § 6a-1302" (Utah). 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 Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 6a-1302 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah 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 Utah.