Washington § 24.40.020 - Articles of incorporation deemed to contain prohibiting provisions.

Full text of Washington Revised Code of Washington § 24.40.020 — Articles of incorporation deemed to contain prohibiting provisions., with citation guidance and answers to common questions.

§ 24.40.020. Articles of incorporation deemed to contain prohibiting provisions.

The articles of incorporation of every corporation to which this chapter applies shall be deemed to contain provisions prohibiting the corporation from:
(1) Engaging in any act of "self-dealing" (as defined in section 4941(d) of the Internal Revenue Code of 1954), which would give rise to any liability for the tax imposed by section 4941(a) of the Internal Revenue Code of 1954;
(2) Retaining any "excess business holdings" (as defined in section 4943(c) of the Internal Revenue Code of 1954), which would give rise to any liability for the tax imposed by section 4943(a) of the Internal Revenue Code of 1954;
(3) Making any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of section 4944 of the Internal Revenue Code of 1954, so as to give rise to any liability for the tax imposed by section 4944(a) of the Internal Revenue Code of 1954; and
(4) Making any "taxable expenditures" (as defined in section 4945(d) of the Internal Revenue Code of 1954) which would give rise to any liability for the tax imposed by section 4945(a) of the Internal Revenue Code of 1954.
[ 1971 c 59 s 3.]

Source: official Washington text · Last verified 2026-08-27

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Frequently Asked Questions About Washington § 24.40.020

What does Revised Code of Washington § 24.40.020 cover?

Section 24.40.020 ("Articles of incorporation deemed to contain prohibiting provisions.") is part of the Revised Code of Washington, the codified statutory law of Washington. 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 Washington § 24.40.020?

A common citation format is "Revised Code of Washington § 24.40.020" (Washington). 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 Washington law?

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

How does Washington § 24.40.020 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Washington can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

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