Corporations Code section 12453

Neither a corporation nor any of its subsidiaries shall purchase or redeem memberships, or make a patronage distribution to members out of earnings of the corporation on nonmember patronage, or make a distribution, if the corporation or the subsidiary purchasing or redeeming memberships or 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.

Source: Section 12453, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=12453. (updated Jan. 1, 1984; accessed Jul. 21, 2025).

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Verified:
Jul. 21, 2025

§ 12453's source at ca.gov

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Location: https://california.public.law/codes/corporations_code_section_12453

Original Source: Section 12453, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=12453. (last accessed May 12, 2025).