Cal. Corp. Code § 501

Current through 2020 Notice Register, No. 44, October 30, 2020
Section 501

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.

Ca. Corp. Code § 501