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 Jun. 30, 2025).

Green check means up to date. Up to date

Verified:
Jun. 30, 2025

§ 12453's source at ca​.gov