Tenn. Code Ann. § 48-63-101 Prohibited distributions.
48-63-101. Prohibited distributions.
Except as authorized by § 48-63-102, a corporation shall not make any distributions.
Acts 1987, ch. 242, § 13.01.
Distributions
Tenn. Code Ann. tit. 48, ch. 63
in effectTenn. Code Ann. § 48-63-102 Purchase of memberships—Authorized distributions.
48-63-102. Purchase of memberships—Authorized distributions.
(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) A public benefit corporation may make distributions to its members who are public benefit corporations if the distributions are in conformity with its charitable purposes.
(c) A public benefit corporation and a mutual benefit corporation may make distributions upon dissolution in conformity with chapter 64 of this title.
Acts 1987, ch. 242, § 13.02; 2014, ch. 899, § 76.
Source: Tennessee Code (state release 76 via Public.Resource.Org) + public chapters (Tennessee Secretary of State)URL: https://archive.org/download/gov.tn.tca/release76.2021.05.21/gov.tn.tca.title.48.htmlFetched: 10/24/2026