Corporations Code section 7413

Neither a corporation nor any of its subsidiaries shall purchase or redeem a membership of the parent or subsidiary if the articles of the corporation contain a provision authorized by subparagraph (B) of paragraph (4) of subdivision (a) of Section 7132 and such corporation or the subsidiary making the purchase or redemption is, or as a result thereof would be, likely to be unable to meet the obligations resulting from such article provision.

Source: Section 7413, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=7413. (updated Jan. 1, 2023; accessed Jul. 21, 2025).

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Verified:
Jul. 21, 2025

§ 7413's source at ca.gov

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Location: https://california.public.law/codes/corporations_code_section_7413

Original Source: Section 7413, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=7413. (last accessed May 12, 2025).