California Corporations Code
§ 5240
CORP § 5240 Effective Jan 1, 2016Div. 2 · Title 1 · Part 2 · Ch. 2 · Art. 4
Statute text
View on leginfo.ca.gov(a)This section applies to all assets held by the corporation for investment. Assets which are directly related to the corporation’s public or charitable programs are not subject to this section.
(b)Except as provided in subdivision (c), in investing, reinvesting, purchasing, acquiring, exchanging, selling and managing the corporation’s investments, the board shall do the following:
(1)Avoid speculation, looking instead to the permanent disposition of the funds, considering the probable income, as well as the probable safety of the corporation’s capital.
…
Legislative history
Amended by Stats. 2015, Ch. 56, Sec. 1. (AB 792) Effective January 1, 2016.