P.R. Laws tit. 7, § 1365r
(a) None of the members of the Board of Directors shall receive any compensation or remuneration whatsoever for the performance of their functions. However, the general regulations of the cooperative may authorize the payment of per diems for attendance to official meetings, subject to the rules specifically adopted by the Corporation to such purposes. Said rules shall provide, among other things, the maximum permissible amount for this item, per meeting, and practices not allowed regarding the payment of these amounts.
(b) Furthermore, the cooperative may reimburse any reasonable expenses incurred by the members of the Board of Directors in the performance of their functions, upon presenting documentary evidence thereof, pursuant to the regulations adopted by the Board of Directors of each cooperative. The Corporation is also empowered to adopt specific regulations on this matter, which shall define reasonable amounts and forbidden practices regarding the reimbursement of expenses. It shall be the responsibility of the Board of Directors to see to the faithful compliance of the standards provided in the regulations of the cooperative and in the regulations adopted by the Corporation on this matter.
(c) The payments made under this section shall only cover official travel expenses that specifically advance the interests of the cooperative and that shall benefit it. A detailed list of all sums paid for this item shall be expressly divulged in the annual report distributed to the members.
(d) No cooperative that has failed to distribute its surplus among its members for two (2) consecutive years, shall make any payment whatsoever to the members of the Board of Directors.
(e) Any payment of commissions, incentives, benefits, or promotions, or any other object of value received by the cooperative shall be for the exclusive benefit thereof, and shall not favor nor benefit any member of the Boards of Directors, the Executive President, nor any employee.
(f) None of the above shall restrict the power of the cooperatives to provide the necessary insurance to the executive officials and members of the Boards of Directors to protect each of them while they are exercising the functions of their office. The cooperative may also acquire the following insurance for them:
(1) Life insurance;
(2) cancer and pernicious disease insurance;
(3) public liability insurance, and
(4) insurance specifically designed by insurance cooperatives for officials and members of the governing boards during official functions.
History —Oct. 28, 2002, No. 255, § 5.19.