Nonprofit Mutual Benefit Corp. Law › CHAPTER 4. Distributions [7410 - 7420] › ARTICLE 1. Limitations [7410 - 7414]
California Corporations Code § 7411. Distributions Prohibited; Exceptions
(Amended by Stats. 1979, Ch. 724.)
Text current as of August 17, 2026, per California Legislative Information.
Text current as of August 17, 2026, per California Legislative Information.
(a) Except as provided in subdivision (b), no corporation shall make any distribution except upon dissolution.
(b) A corporation may, subject to meeting the requirements of Sections 7412 and 7413 and any additional restrictions authorized by Section 7414, purchase or redeem memberships.
The text of the Nonprofit Mutual Benefit Corporation Law is provided for reference and convenience only, from the California Legislative Information website (leginfo.legislature.ca.gov). It is not legal advice, and the official version of California statutes is published by the state. Statutes may have been amended after the “current as of” date shown above. Consult counsel regarding the application of any statute to your association.