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California Corporations Code

§ 501

CORP § 501Div. 1 · Title 1 · Ch. 5

Statute text

View on leginfo.ca.gov
Neither a corporation nor any of its subsidiaries shall make any distribution to the corporation’s shareholders (Section 166) if the corporation or the subsidiary 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Repealed and added by Stats. 1975, Ch. 682.

Source: California Corporations Code § 501 from the California Legislative Information (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.