Texas Business Organizations Code

§ 251.403 — DISTRIBUTION OF ASSETS

BO § 251.403Title 6. ASSOCIATIONS · Ch. 251. COOPERATIVE ASSOCIATIONS · Art. I. WINDING UP AND TERMINATION

Statute text

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:

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 133, eff. September 1, 2007.