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Tex. Local Government Code § 501.053

CORPORATION NONPROFIT; NET EARNINGS

Texas · Texas Local Government Code · Status: effective

Business & Commerce
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Tex. Local Government Code § 501.053, CORPORATION NONPROFIT; NET EARNINGS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/693979
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(a) A corporation is nonprofit, and the corporation's net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except as provided by Subsection (b). (b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation's expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation's authorizing unit.