{"code":"CORP","codeName":"Corporations Code","section":"12453","citation":"Corp. Code, § 12453","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"TITLE 1. CORPORATIONS [100. - 14707.]","url":"https://blackletter.si/corporations-code/title-1"},{"name":"DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES [12000. - 14707.]","url":"https://blackletter.si/corporations-code/title-1/division-3"},{"name":"PART 2. COOPERATIVE CORPORATIONS [12200. - 12704.]","url":"https://blackletter.si/corporations-code/title-1/division-3/part-2"},{"name":"CHAPTER 4. Distributions [12450. - 12455.]","url":"https://blackletter.si/corporations-code/title-1/division-3/part-2/chapter-4"},{"name":"ARTICLE 1. Limitations [12450. - 12454.5.]","url":"https://blackletter.si/corporations-code/title-1/division-3/part-2/chapter-4/article-1"}],"history":"Repealed and added by Stats. 1982, Ch. 1625, Sec. 3.   Operative January 1, 1984.","effective":null,"html":"<p>Neither a corporation nor any of its subsidiaries shall purchase or redeem memberships, or make a patronage distribution to members out of earnings of the corporation on nonmember patronage, or make a distribution, if the corporation or the subsidiary purchasing or redeeming memberships or 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.</p>","text":"Neither a corporation nor any of its subsidiaries shall purchase or redeem memberships, or make a patronage distribution to members out of earnings of the corporation on nonmember patronage, or make a distribution, if the corporation or the subsidiary purchasing or redeeming memberships or 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.","otherVersions":[],"url":"https://blackletter.si/corporations-code/limitations-12453","source":"California Legislative Information bulk export (pubinfo)"}