California Corporations Code

§ 12453

CORP § 12453Div. 3 · Title 1 · Part 2 · Ch. 4 · Art. 1

Statute text

Neither a corporation nor any of its subsidiaries shall purchase or redeem memberships, or make a patronage distribution to members out of earnings of the corporation on nonmember patronage, or make a distribution, if the corporation or the subsidiary purchasing or redeeming memberships or making the distribution is, or as a result thereof would be, likely to be unable to meet its liabilities (except those whose payment is otherwise adequately provided for) as they mature.

Legislative history

Repealed and added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.