Florida Statute 617.0505 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVI
BUSINESS ORGANIZATIONS

Chapter 617
CORPORATIONS NOT FOR PROFIT

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F.S. 617.0505

617.0505 Distributions; exceptions.—Except as authorized in s. 617.1302, a corporation may not make distributions to its members, directors, or officers.

(1) A mutual benefit corporation, such as a private club that is established for social, pleasure, or recreational purposes and that is organized as a corporation of which the equity interests are held by the members, may, subject to s. 617.1302, purchase the equity membership interest of any member, and the payment for such interest is not a distribution for purposes of this section.

(2) A corporation may pay compensation in a reasonable amount to its members, directors, or officers for services rendered, may confer benefits upon its members in conformity with its purposes, and, upon dissolution or final liquidation, may make distributions to its members as permitted by this chapter.

(3) If expressly permitted by its articles of incorporation, a corporation may make distributions upon partial liquidation to its members, as permitted by this section. Any such payment, benefit, or distribution does not constitute a dividend or a distribution of income or profit for purposes of this section.

(4) A corporation that is a utility exempt from regulation under s. 367.022(7), whose articles of incorporation state that it is exempt from taxation under s. 501(c)(12) of the Internal Revenue Code, may make refunds to its members, prior to a dissolution or liquidation, as its managing board deems necessary to establish or preserve its tax-exempt status. Any such refund does not constitute a dividend or a distribution of income or profit for purposes of this section.

(5) A corporation that is regulated by chapter 718, chapter 719, chapter 720, chapter 721, or chapter 723, or a corporation where membership in such corporation is required pursuant to a document recorded in the county property records, may make refunds to its members, giving credits to its members, disbursing insurance proceeds to its members, or disbursing or paying settlements to its members without violating this section.

History.—s. 33, ch. 90-179; s. 2, ch. 96-343; s. 15, ch. 2005-267; s. 15, ch. 2009-205.

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Amendments to 617.0505

Arrestable Offenses / Crimes under Fla. Stat. 617.0505

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 617.0505.

Annotations, Discussions, Cases:

Cases Citing Statute 617.0505

Total Results: 3

Ago

Court: Fla. Att'y Gen. | Date Filed: 2000-10-06T00:53:00-07:00

Snippet: tls 1 Section 617.01401(9), Fla. Stat. 2 Section 617.0505(2), Fla. Stat. See also, s. 617.0601(1)(a), Fla

Ago

Court: Fla. Att'y Gen. | Date Filed: 1999-08-12T00:53:00-07:00

Snippet: members, directors, or officers."And see, s. 617.0505(1), Fla. Stat., stating that a dividend may not

Ago

Court: Fla. Att'y Gen. | Date Filed: 1999-04-30T00:53:00-07:00

Snippet: Memorial, in light of section 617.0505(1), Florida Statutes. Section 617.0505(1), Florida Statutes, states…substantially the following question: Does section 617.0505, Florida Statutes, preclude a member of a nonprofit…provide for such distribution? In sum: Section 617.0505, Florida Statutes, allows payment of compensation…members, directors, or officers. While section 617.0505(1), Florida Statutes, recognizes that distributions… with its purposes," contained in section 617.0505, Florida Statutes, to assert that distributing