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Section 33-31-1302. Authorized distributions.

SC Code § 33-31-1302 (2019) (N/A)
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(a) A mutual benefit corporation may purchase its memberships if after the purchase is completed:

(1) the corporation would be able to pay its debts as they become due in the usual course of its activities; and

(2) the corporation's total assets would at least equal the sum of its total liabilities.

(b) Corporations may make distributions upon dissolution in conformity with Sections 33-31-1401 through 33-31-1440 of this chapter.

(c) The board of directors may base a determination that a distribution is not prohibited under subsection (a) either on financial statements prepared on the basis of accounting practices and principals that are reasonable in the circumstances or on a fair valuation or other method that is reasonable in the circumstances.

HISTORY: 1994 Act No. 384, Section 1.

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Section 33-31-1301. Prohibited distributions.
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Section 33-31-1401. Dissolution by incorporators.