Corporations Code section 12454.5

(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.

Source: Section 12454.5, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=12454.5. (updated Jan. 1, 2016; accessed Dec. 1, 2025).

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Up to date

Verified:
Dec. 1, 2025

§ 12454.5's source at ca.gov

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Location: https://california.public.law/codes/corporations_code_section_12454.5

Original Source: Section 12454.5, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=12454.5. (last accessed May 12, 2025).