TITLE 1. CORPORATIONS 100-14631›DIVISION 1. GENERAL CORPORATION LAW 100-2319›CHAPTER 5. Dividends and Reacquisitions of Shares 500-511

§ 501

California Corporations Code · 2018-11 edition · updated 2026-10-04 · California

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.

(Repealed and added by Stats. 1975, Ch. 682.)

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California Corporations Code

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