Kentucky Revised Statutes Title XXIII. Private Corporations and Associations § 273.237.Shares of stock and dividends prohibited; permissible expenditures

(a) Pay reasonable compensation to its members, directors, or officers for services rendered to the corporation;

(b) Reimburse reasonable expenses to its members, directors, or officers in connection with services rendered to the corporation;

(c) Confer benefits upon its members in conformity with its purposes;

(d) Apply income or profit so as to reduce or eliminate dues, fees, or contributions that otherwise would be payable to the corporation by its members;

(e) Make distributions, subject to subsection (3) of this section, upon dissolution or final liquidation to its members as permitted by KRS 273.161 to 273.390, and no such payment, benefit, or distribution shall be deemed to be a dividend or a distribution of income or profit;

(f) Make distributions, subject to subsection (3) of this section, to any entity:

(g) Make distributions, subject to subsection (3) of this section and only by a corporation other than a charitable or religious corporation to purchase its memberships.

(a) The corporation would not be able to pay its debts as they become due in the usual course of business; or

(b) The corporation's total assets would be less than the sum of its total liabilities.