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2011 California Code
Corporations Code
TITLE 1. CORPORATIONS [100 - 14551]
CHAPTER 5. Dividends and Reacquisitions of Shares
Section 501


CA Corp Code § 501 (through 2012 Leg Sess) What's This?

Neither a corporation nor any of its subsidiaries shall make any distribution to the corporation s shareholders (Section 166) if the corporation or the subsidiary 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.

(Repealed and added by Stats. 1975, Ch. 682.)

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