Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1056
Barcode 034368
CHAMBER ACTION
Senate House
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11 The Committee on Judiciary (Campbell) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 On page 60, between lines 11 and 12,
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17 insert:
18 Section 14. Subsection (1) of section 617.0505,
19 Florida Statutes, is amended to read:
20 617.0505 Payment of dividends and distribution of
21 income to members prohibited; issuance of certificates of
22 membership; effect of stock issued under prior law.--
23 (1) A dividend may not be paid, and any part of the
24 income or profit of a corporation may not be distributed, to
25 its members, directors, or officers. A private club that is
26 established for social, pleasure, or recreational purposes and
27 organized as a corporation of which the equity interests are
28 held by the members may purchase the equity membership
29 interest of any member and the payment for such interest is
30 not a distribution for purposes of this section. A corporation
31 may pay compensation in a reasonable amount to its members,
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7:23 AM 03/29/05 s1056c-ju32-c9u
Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1056
Barcode 034368
1 directors, or officers for services rendered, may confer
2 benefits upon its members in conformity with its purposes,
3 and, upon dissolution or final liquidation, may make
4 distributions to its members as permitted by this act. If
5 expressly permitted by its articles of incorporation, a
6 corporation may make distributions upon partial liquidation to
7 its members, as permitted by this section. Any such payment,
8 benefit, or distribution does not constitute a dividend or a
9 distribution of income or profit for purposes of this section.
10 Any corporation which is a utility exempt from regulation
11 under s. 367.022(7), whose articles of incorporation state
12 that it is exempt from taxation under s. 501(c)(12) of the
13 Internal Revenue Code, may make such refunds to its members,
14 prior to a dissolution or liquidation, as its managing board
15 deems necessary to establish or preserve its tax-exempt
16 status. Any such refund does not constitute a dividend or a
17 distribution of income or profit for purposes of this section.
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19 (Redesignate subsequent sections.)
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23 And the title is amended as follows:
24 On page 2, line 14, after the semicolon,
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26 insert:
27 amending s. 617.0505, F.S.; exempting certain
28 private clubs organized as corporations from a
29 prohibition against distributions made to
30 members in certain circumstances;
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