                                 CODE OF VIRGINIA

SHARES OF STOCK AND DIVIDENDS PROHIBITED (§ 13.1-814)

A corporation shall not issue shares of stock. No dividend shall be paid and no
part of the income of a corporation shall be distributed to its members,
directors or officers, except that a corporation may make distributions to
another nonprofit corporation that is a member of such corporation or has the
power to appoint one or more of its directors. A corporation may pay
compensation in a reasonable amount to its members, directors or officers for
services rendered, including pensions, may confer benefits upon its members in
conformity with its purposes, and may make distributions to its members or
others as permitted by this Act upon dissolution or final liquidation and no
such payment, benefit or distribution shall be deemed to be a dividend or a
distribution of income.

HISTORY: Code 1950, § 13.1-229; 1956, c. 428; 1985, cc. 380, 522.