The bar on distributions does not prevent reasonable compensation or reimbursement of expenses
What the document says“This subsection does not prevent the payment, in amounts approved by the board of directors, of-- ``(A) reasonable compensation; or ``(B) reimbursement for expenses incurred in undertaking the corporation's business, to officers, directors, or members.”
The same paragraph states two payments the bar on distributions does not prevent: reasonable compensation, and reimbursement for expenses incurred in undertaking the corporation's business, to officers, directors or members. Both are in amounts approved by the board of directors.
What the document actually says“This subsection does not prevent the payment, in amounts approved by the board of directors, of-- ``(A) reasonable compensation; or ``(B) reimbursement for expenses incurred in undertaking the corporation's business, to officers, directors, or members.”
The group can still pay fair wages. It can also pay back costs. Costs mean cash a person put in for the group's work. The board must say yes to the sums.
So the bar on pay outs is not a bar on wages. Work for the group can be paid for.
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