§ 5410 Corporate Distribution Prohibition

Corporations Code·California

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Key Takeaways

•Companies can't give out money or stuff to owners unless it's for buying into a special kind of housing group.
•This rule doesn't stop people from buying into a group that helps with affordable housing.
•The housing group must be set up to help the public, not just make money.

Example

A company wants to give extra money to its owners.

The company can't do this unless the money is used to buy into a special housing group that helps people find affordable homes.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 5410 Corporate Distribution Prohibition

No corporation shall make any distribution. This section shall not apply to the purchase of a membership in a limited-equity housing cooperative, as defined in Section 33007.5 of the Health and Safety Code, which is organized as a public benefit corporation. (Amended by Stats. 1992, Ch. 250, Sec. 2. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

distribution limited-equity housing cooperative public benefit corporation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 5410.

Key Takeaways

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Key Takeaways

Example

Key Terms

Related Statutes

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