Tex. Bus. Orgs. Code Section 251.301
Limitations on Return on Capital

(a)

Except as otherwise provided by the cooperative association’s bylaws, an investment dividend of a cooperative association may not be cumulative and may not exceed eight percent of investment capital.

(b)

Total investment dividends distributed for a fiscal year may not exceed 50 percent of the net savings for the period.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Source: Section 251.301 — Limitations on Return on Capital, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.251.htm#251.301 (accessed May 26, 2025).

251.001
Definitions 251.002
Applicability of Nonprofit Corporation Provisions 251.003
Exemption 251.051
Organization Meeting 251.052
Amendment of Certificate of Formation 251.053
Bylaws 251.054
Restated Certificate of Formation 251.101
Board of Directors 251.102
Officers 251.103
Removal of Directors and Officers 251.104
Referendum 251.151
Eligibility and Admission 251.152
Expulsion 251.153
Subscribers 251.154
Liability 251.201
Share and Membership Certificates: Issuance and Contents 251.202
Transfer of Shares and Membership 251.203
Share and Membership Certificates 251.204
Certificates 251.251
Meetings 251.252
Notice of Special Meeting 251.253
Meetings by Units of Membership 251.254
One Member--one Vote 251.255
No Proxy 251.256
Voting by Mail 251.257
Voting by Mail or by Delegates 251.301
Limitations on Return on Capital 251.302
Allocation and Distribution of Net Savings 251.351
Recordkeeping 251.352
Reports to Members 251.353
Annual Report of Financial Condition 251.354
Failure to File Report 251.401
Voluntary Winding up and Termination 251.402
Execution of Certificate of Termination 251.403
Distribution of Assets 251.404
Involuntary Termination 251.451
Exemption from Taxes

Verified:
May 26, 2025

§ 251.301. Limitations on Return on Capital's source at texas.gov

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Location: https://texas.public.law/statutes/tex._bus._orgs._code_section_251.301

Original Source: Section 251.301 — Limitations on Return on Capital, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.251.htm#251.301 (last accessed May 10, 2025).