California Corporations Code CHAPTER 5 - Dividends and Reacquisitions of Shares

• Section 500.
  (a) Neither a corporation nor any of its subsidiaries shall make any distribution to the corporation’s shareholders (Section 166) unless the board of directors has determined...
• 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...
• Section 503.
  (a) The provisions of Sections 500 and 501 shall not apply to a purchase or redemption of shares of a deceased shareholder from the proceeds of...
• Section 504.
  (a) The provisions of Section 500 do not apply to a dividend declared by either of the following:(1) A regulated investment company, as defined in the federal...
• Section 505.
  Nothing in this chapter prohibits additional restrictions upon the declaration of dividends or the purchase or redemption of a corporation’s own shares by provision in...
• Section 506.
  (a) Any shareholder who receives any distribution prohibited by this chapter with knowledge of facts indicating the impropriety thereof is liable to the corporation for the...
• Section 508.
  This chapter does not apply in connection with any proceeding for winding up and dissolution under Chapter 18 or 19.(Added by Stats. 1975, Ch. 682.)
• Section 509.
  (a) A corporation may redeem any or all shares which are redeemable at its option by (1) giving notice of redemption as provided in subdivisions (b)...
• Section 510.
  (a) When a corporation reacquires its own shares, those shares are restored to the status of authorized but unissued shares, unless the articles prohibit the reissuance...
• Section 511.
  Notwithstanding the provisions of this chapter, a negotiable instrument issued by a corporation for the purchase or redemption of shares shall be enforceable by a...

Last modified: October 22, 2018