Corp. Code, § 501 · Chapter 5. Dividends and Reacquisitions of Shares
Corp. Code, § 501
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
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.
Notes and commentary — not statutory text
History
Repealed and added by Stats. 1975, Ch. 682.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=501.
- Text hash
- sha256 54b186f8fd568c7ad23d07139b3c6bbcb444f31aaafd8821496aa74335b2a7e1
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
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Corporations Code
Cited by 6 provisions
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Corporations Code
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