California Corporations Code

§ 510

CORP § 510 Effective Jan 1, 1996Div. 1 · Title 1 · Ch. 5

Statute text

(a)When a corporation reacquires its own shares, those shares are restored to the status of authorized but unissued shares, unless the articles prohibit the reissuance thereof.

(b)When a corporation reacquires authorized shares of a class or series and the articles prohibit the reissuance of those shares:

(1)If all of the authorized shares of that class or series, as the case may be, are reacquired, then (A) that class or series is automatically eliminated, (B) in the case of reacquisition of all of the authorized shares of a series, the authorized number of shares of the class to which the shares belonged is reduced by the number of shares so reacquired, and (C) the articles shall be amended to eliminate any statement of rights, preferences, privileges, and restrictions relating solely to that class or series.

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Legislative history

Amended by Stats. 1995, Ch. 154, Sec. 5. Effective January 1, 1996.