§20908 — Title 36 Patriotic and National Observances | U.S. Code

Summary

The corporation may not sell stock, pay dividends, take part in politics or try to influence laws, make loans to directors, officers, or employees, or claim U.S. Government approval. Its income and assets cannot benefit directors, officers, or members while the charter lasts, except for board‑approved reasonable pay or reimbursement of necessary expenses.

Title 36, §20908

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not issue stock or declare or pay a dividend.

(b)The corporation or a director or officer as such may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation.

(c)The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the board of directors.

(d)The corporation may not make a loan to a director, officer, or employee.

(e)The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 20908(a)36:2108(d).Aug. 10, 1982, Pub. L. 97–234, § 8(a)–(e), 96 Stat. 262. 20908(b)36:2108(c). 20908(c)36:2108(a). 20908(d)36:2108(b). 20908(e)36:2108(e). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “as such” are substituted for “acting as such officer or director” for consistency in the revised title and to eliminate unnecessary words. In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

Editorial Notes

Amendments

2006—Subsec. (c). Pub. L. 109–284 substituted “board of directors” for “board or directors”.

§20908 Restrictions