{"code":"CORP","codeName":"Corporations Code","section":"501","citation":"Corp. Code, § 501","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"TITLE 1. CORPORATIONS [100. - 14707.]","url":"https://blackletter.si/corporations-code/title-1"},{"name":"DIVISION 1. GENERAL CORPORATION LAW [100. - 2319.]","url":"https://blackletter.si/corporations-code/title-1/division-1"},{"name":"CHAPTER 5. Dividends and Reacquisitions of Shares [500. - 511.]","url":"https://blackletter.si/corporations-code/title-1/division-1/chapter-5"}],"history":"Repealed and added by Stats. 1975, Ch. 682.","effective":null,"html":"<p>Neither a corporation nor any of its subsidiaries shall make any distribution to the corporation’s shareholders (Section <a href=\"/corp/166\">166</a>) 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.</p>","text":"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.","otherVersions":[],"url":"https://blackletter.si/corporations-code/dividends-and-reacquisitions-of-shares-501","source":"California Legislative Information bulk export (pubinfo)"}