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A small special district water company says it is both a…

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A small special district...

A small special district water company says it is both a non-profit and is operating as a single enterprise fund is that legal?

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Meiners oaks water district says it is both a non profit and entire district is a single enterprise fund. is that ethical and legal ? It was once a mutual water company in rural area in ventura county california serving local farmers. now serves 1,200 residences and a handful of small farms.

Lawyer's Assistant: Is there anything else the Expert should be aware of?

They seem completely shady. I don't think they dissolved the mutual of all its shares either. before they took it over.

Submitted: 11 months ago.Category: Business Law
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9/10/2017
Business Lawyer: Law Educator, Esq., Attorney replied 11 months ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 126,835
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

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Business Lawyer: Law Educator, Esq., Attorney replied 11 months ago

Actually they could be a single enterprise fund as well as a non-profit, because they are serving a community purpose or function. Furthermore, the proceeds to the fund are being used to fund the water system and are not intended to be profits to the entity or any individual. There are many corporations out there that are single enterprise funds but are also non-profit due to their purpose and mission of the services that they provide.

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