Cal. Corporations Code § 501 : Corporations — California Corporations Code — General Corporation Law — Dividends And Reacquisitions Of Shares — Prohibited distribution

14 Sep 2016

Current through the 2016 Legislative Session

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.

Ca. Corp. Code § 501