Corporations Code § 12454.5

ARTICLE 1. Limitations

Current as of September 28, 2026Corp. Code, § 12454.5Official source ↗

Added by Stats. 2015, Ch. 192, Sec. 18. (AB 816) Effective January 1, 2016.

(a) A worker cooperative may create an indivisible reserves account that shall not be distributed to members.

(b) Funds in the indivisible reserves account shall only derive from non-patronage-sourced income, in a manner provided in the articles or bylaws, or by the board, and shall be used as capital for the cooperative.