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Texas Business Organizations Code - BUS ORG § 251.403. Distribution of Assets

Current as of January 01, 2024 | Updated by Findlaw Staff

Subject to Sections 11.052 and 11.053(a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:

(1) by returning the par value of the investors' capital to investors;

(2) by returning the amounts paid on subscriptions to subscribers for invested capital;

(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;

(4) by returning to members their membership capital; and

(5) by distributing any surplus in the manner provided by the certificate of formation:

(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;

(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or

(C) by a combination of both methods of distribution.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 251.403. Distribution of Assets - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-251-403/

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