TITLE 1. CORPORATIONS 100-14631›DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES 12000-14631›PART 2. COOPERATIVE CORPORATIONS 12200-12704›CHAPTER 4. Distributions 12450-12455›ARTICLE 1. Limitations 12450-12454.5

§ 12454.5

California Corporations Code · 2020-11 edition · updated 2026-10-04 · California

(a) A worker cooperative may create an indivisible reserves account that shall not be distributed to members.

(b) Funds in the indivisible reserves account shall only derive from non-patronage-sourced income, in a manner provided in the articles or bylaws, or by the board, and shall be used as capital for the cooperative.

(Added by Stats. 2015, Ch. 192, Sec. 18. (AB 816) Effective January 1, 2016.)

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California Corporations Code

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