TITLE 1. CORPORATIONS 100-14631›DIVISION 2. NONPROFIT CORPORATION LAW 5000-10841›PART 3. NONPROFIT MUTUAL BENEFIT CORPORATIONS 7110-8910›CHAPTER 4. Distributions 7410-7420›ARTICLE 1. Limitations 7410-7414

§ 7412

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

Neither a corporation nor any of its subsidiaries shall make a distribution 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.

(Added by Stats. 1978, Ch. 567.)

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California Corporations Code

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