The Ministry of Commerce clarified that non-profit companies must spend the amounts of profits realized from their activities in the disbursement channels and fields stipulated in the articles of incorporation or the company’s bylaws.
The Ministry stated that it is permissible for non-profit companies to allocate a percentage of their profits not exceeding 30% to strengthen their investments and expand their activities, unless the articles of incorporation or the bylaws provide otherwise.
It is also permissible for non-profit companies to pay reasonable remunerations or other benefits to their managers, members of their boards of directors, or their employees in consideration of the services they provide.
The Ministry pointed out that non-profit companies are prohibited from distributing any of their profits to any of the company’s members, its managers, members of its boards of directors, or its employees, unless such distribution is included within the company’s disbursement channels and fields, provided that the distributable profits do not exceed 10% of the total profits.