Corporations Code section 2308

Chapter 5 of the new law applies to any distribution to its shareholders made after the effective date by a corporation existing on the effective date, except that any such distribution effected pursuant to a contract for the purchase or redemption of shares entered into by the corporation prior to the effective date may be made if permissible under Chapter 5 or under the prior law in effect at the time the contract was entered into.

Source: Section 2308, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=2308.­ (updated Jan. 1, 1975; accessed Jun. 30, 2025).

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Verified:
Jul. 7, 2025

§ 2308's source at ca​.gov